Cold caller wanting to purchase my rental property.

UT · Member since 2018 · 4 posts · 2 votes

I have a single family rental that I am looking to sell and upgrade to a fourplex. I am getting my ducks in line by meeting mentors and doing about 10-15 hours of research a week to prepare to do a 1031 exchange when I find the right property to buy.

Tonight I had a cold caller showing interest in my property. Normally I don't talk to them about my affairs but decided to tell them I would consider selling because I am looking at doing a 1031 exchange. In the end the caller stated an investor would get back to me. I was not prepared for this call and did not get the callers information.

My question is should I be talking to cold callers? Is this a networking opportunity or should I stay away?

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Dave FosterBusiness Member

Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes

@Scott May, At the end of the day a deal is a deal no matter where it comes from. You have to kiss a lot of frogs sometimes... etc etc. In this case it's probably a larger wholesaler trying a new tact. Or a no pockets firm trying to get interested parties to sell a list to someone in turn. Seller beware. But it never hurts to listen. My curiosity is piqued. Let us know how it turns out. I mean there are some legit folks out there who use sophisticated marketing techniques to find properties :)

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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
7y
@Scott May, At the end of the day a deal is a deal no matter where it comes from. You have to kiss a lot of frogs sometimes... etc etc. In this case it's probably a larger wholesaler trying a new tact. Or a no pockets firm trying to get interested parties to sell a list to someone in turn. Seller beware. But it never hurts to listen. My curiosity is piqued. Let us know how it turns out. I mean there are some legit folks out there who use sophisticated marketing techniques to find properties :)
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Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
7y
@Scott May if you are going to talk to a cold caller and seriously consider them I'd also talk to every other "we buy houses" company you can find in a quick Google search so that you get the full picture, you can also talk to a realtor to get even more info
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Scott May
OP
UT · Member since 2018 · 4 posts · 2 votes
7y
@Dave Foster I’ll proceed with caution.
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Scott May
OP
UT · Member since 2018 · 4 posts · 2 votes
7y
@Aaron K. Good points. I’ll look into these other options and decide what works best.
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Cam Jimmy
Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
7y
I wouldn't tell them about you doing a 1031 exchange... that's like showing your hand in poker. If they know you are doing a 1031, they know you have a certain amount of days to do it. They can ultimately back out at the last minute and change their offer knowing you will be desperate. Just an FYI for you.
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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y
The guys sending you fliers or cold calling are going to offer you 60 cents on a dollar. And then they are going to string you along while they look for an end buyer. They will drop the offer once you get tired of waiting for them to close.
IF you go ahead with them, make sure you escrow a deposit from them with escrow/title company and the contract says you get the money of they fail to preform on time. Watch how fast they run when you ask them to put some skin in the game.
You will get more money by using MLS with a realtor.
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Allan Smith
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
7y
VALUE = The Degree of EXPOSURE & PROMOTION
Putting it on the MLS will get you a better offer without a doubt.
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Account Closed
Murrieta · Member since 2019 · 34 posts · 4 votes
7y
@Scott May if the property is in Southern California, I have a cash investor who may be interested in purchasing. I'm not a wholesaler, however I do acquisitions. Message me with the address and the price the wholesaler negotiated, I'll let you know if it's something we could top. At the very least, I can guarantee if my investor is interested, there will be no shenanigans, the money is not an issue for the right investment.
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Amy KendallBusiness Member
Real Estate Broker · Lehi, UT · Member since 2016 · 397 posts · 318 votes
7y
@Scott May Also have a real estate agent run an analysis on your property to see what comparable properties have recently sold for in your area. That will hopefully give you an idea of what your property could sell for on the MLS, then you will have a starting point for a realistic price point. If the wholesaler's price is close to that value and can close quickly, then give them a shot. But it doesn't sound like you are in a hurry or in any sort of distress with your property, and wholesalers are usually trying to locate motivated sellers willing to sell at a discount.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
just a wholesaler out fit calling you.. i get them daily.
if its a decent property then no reason to take a discount to sell it. but if you want to discount to sell it.
then as stated above just get ahold of all the we buy houses guys and have them compete
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Scott May
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UT · Member since 2018 · 4 posts · 2 votes
7y
Thank you all for the pointers!
I can't stand cold callers, salesmen, telemarketers, etc. The only reason I didn't tell this lady to take a hike is because i was curious about what she had to say. I have my goals outlined and am waiting to learn a few more things before I move forward. I also have a couple of mentors but have not spent time with them yet.
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Account Closed
Member since 2018 · 175 posts · 103 votes
7y
Originally posted by @Lynnette E.:
The guys sending you fliers or cold calling are going to offer you 60 cents on a dollar. And then they are going to string you along while they look for an end buyer. They will drop the offer once you get tired of waiting for them to close.
IF you go ahead with them, make sure you escrow a deposit from them with escrow/title company and the contract says you get the money of they fail to preform on time. Watch how fast they run when you ask them to put some skin in the game.
You will get more money by using MLS with a realtor.
I bought my last property for asking price. I am closing on another property Friday for asking price. One was a mailer, the other was a cold call. Doesn't necessarily mean it's a wholesaler.
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