I have a property on my radar that will make for a really good deal numbers wise, that I want to flip. I actually found the place on Craigslist. Which is out of the norm for me. Generally I go though wholesalers who I have met in person or heard though word of mouth. In other words someone can vouch for them.
To make it short. I found the place last night. Contacted the person on the ad this morning and went to view it later in the day. The guy apparently owns it and is an investor too who wants to sell this. According to him they do tons of deals in the area. So we continue to chat and I give him my offer which is about 5k off asking. He doesn't counter back and accepts with a close in 14 days and 5K EMD that will be held by a title company on the other side of the state, 7 hours away.
Generally my wholesalers ask for 1-2K. Am I being paranoid that this could be a scam? I have seen other wholesalers ask for 5K, but on a purchase that is less than 100K it seems a lot. I have little to no rapport with this guy and the money is going to a title company I have no control over or can even visit. This makes me feel uneasy.
How can I protect myself here? He is also very pushy on the 14 days, which has me concerned because that is a short amount of time to get HM lined up.
Would love to hear others take.
Anybody can put an ad up on Craigslist. 5K earnest money is real money for a sub 100K property up in my neck of the woods. I think being plenty paranoid is a good thing here.
Research this guy as thoroughly as you can online. Crawl up his darkest sweaty place. Make sure he is the owner of the property on the local property register. Check the title as much as you can, if you can, online. If he has tons of deals in the area, you should be able to find him.
Found on Craigslist, grabbed at your opener, high EMD, pushy seller, title co too far away for either party; what could go wrong? Too many sheisters in this business today. Hope it checks out for you-keep us posted!
Did you confirm he actually owns it?
Try asking him to use your preferred title co to hold the EM.
It's a great deal guys, but I have had a lot of success following my gut in this industry. He wanted an unrealistic time to close that just wasn't going to work with HM. So I will pass on this one. Other less shady deals will come!