HUGE Question would love EXPERIENCED insight!!

10 Replies

Hi there!

I was recently started working with an investor/wholesaler that was looking to do some JV's. Things were going well in the fact that he has experience, contacts and properties that I did not. I like to work alone and find my own properties as I have a specific way of working though I can easily adjust to others as well. Here lies the question!

This investor/wholesaler says he has hundreds of properties and has also sold around 50 properties last year. He gave me a list of 19 properties he has under contract and said that we could split the assignment fee once they are sold to either of our buyers lists. I agreed and am not really looking for much out of it as I have my own properties and still do my work on the side. His list was just addresses. (Is this normal??) I inquired about this as when I list properties, I give as much info as possible knowing that it can aid in selling to the end buyer, but also because the buyer will do their own due diligence as they see fit. I created time to research his properties as he stated that he had so many that he didn't know the information about all of them and never needed to. I ONLY post ads and share list when I have at least the bare minimum of info (room#, bath#, sqft, ARV) as I feel this is courteous, professional and will not waste a buyer's time if the property doesn't have their requirements. Some of the properties were not listed with all of the information so I researched comparables to come up with additional info.

There are properties that he doesn't know if they are vacant, or can be accessed. Is this normal as well? I see this as a problem as one like myself can not give proper damage information to an interested investor if neither of us have access or have seen the interior of the property. (This is also a safety factor. Is the property a former crackden? Is is a cave for rats? Was is a meth lab that could kill us all if one of us sneezes?!! All real concerns that flashed through my head.) He mentioned he had the paperwork that would allow him to "break into" vacant properties. I do not "break into" anything! I am a newbie, but have no desire to go to the slammer! He mentioned that seasoned investors do that all the time (no need to admit here on the net, just want to make sure of the normalcy of all of this!)

I am new. But I have the utmost respect for the investors and fellow wholesalers on my buyers list and contact list and do not feel comfortable giving them lists of properties that I have no knowledge of. I just don't want to waste their time. I would love to know would is considered normal practices, even if they are not normal to me.

So my questions are:

Is is normal for wholesalers to have houses under contract but no general information to share with interested investors?

Do other wholesalers/investors generally buy properties without basic information aside of the address of the property?

Is it normal for a wholesaler/investor to carry tools in their trunk to "enter" properties that they may be interested in?

All insight and help is greatly appreciated!!

Can you verify the properties he claims to have sold last year?

@Jesse T.  I can not. I like to believe that he would be telling the truth as RE in our area is pretty small, but I have no way of knowing. He does have a network that speaks well of him...the ones I have met so far.

Sounds like a guy I met in DC a couple years back who sold me the house I have now. His initials are N.C.  If it's him, stay far away!!

Originally posted by @Chantél Fielder :

Is it normal for a wholesaler/investor to carry tools in their trunk to "enter" properties that they may be interested in?

I'd say go with your gut on that. Mine says it's probably normal for burglars and rapists to carry around tools in their trunk to allow them to break into houses that they aren't specifically authorized to.  Someone like this will probably screw you, eventually. 

How does he claim to be finding them? What is his asking price for them? Why does he need you? Are they LOI, options, or contracts that he has on the homes? Sounds pretty dang shady to me.

Hi there, @Jay Gray  ! I try to remove fear from my mind and give everyone the benefit of the doubt, while still remaining a law abiding citizen. I know there are "tricks of the trade" and I don't expect people to reveal them...but I knew things were off. Since my post I severed contact and business dealings with him as I found that he wanted me to do all of the work while we "split" the assignment fees. I kindly and professionally let him know that I am not an employee of his and a partnership includes work from both parties. And that was the end of that! Luckily I have found a very professional investor to conduct future joint ventures with.

Hi @Ryan Dossey  ! He had a list of addresses that I later assumed were from a realtor he was working with. I am not sure of the logistics of their contracts, but knew something was off when he never could tell me beforehand if the property was vacant or damage to the interior ect (things that I use to market the property accordingly)

His asking prices were low but pretty common for the area. He told me that he had over a hundred properties and had no time to sell those on the list. I also didn't have a lot of time but made time to research, list, communicate with potential buyers and schedule viewings. I was happy to do so until I realized that there was information that was not available that made everything look very unprofessional. When the buyers are ready, the sellers should have been prepared beforehand, and this wasn't the case. Money was lost on a sale or two and I'm sure he is still losing money by not having the general/standard information available. But I wish him well nonetheless and see this as a lesson learned!

Good for you @Chantél Fielder  .  Buyer beware. How about 'partner' beware!?  Glad to hear you are still open to working with others and hope this one works out. Best wishes!

@Steve Vaughan thanks! I know that all industries attract people of all choices and try to keep an open mind. I'm grateful for the Bigger Pockets community as without it one could easily not have sound advice in any of their REI dealings especially those that seem a little off putting. Common sense is essential, but I didn't want to assume that just because I wouldn't do something, that it didn't have relevance to the tasks at hand.

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