Anyone else bother by the last BPP episode?

16 Replies

Is anyone else bothered by the latest podcast? The story about the woman who was reluctant to sell. The interviewee kept contacting her. She asked if the price he was offering was fair, she wanted to get an appraisal, he got scared because he knew the price he was offering wasn't fair, the appraiser didn't show up, she said she didn't want to sell, he calls her back and convinces her to sell. Then, he says he made over 300k, but had he waited, he could have made 1 million. 

It seems as though the original owner and seller may have been taken for a bit of money. I know that American has a free market and all. She didn't have to sell to him and etc, but is there any remorse for the woman who didn't know how much her property is worth and is trusting that this individual is giving her a fair price, but he thought he could earn $600k off it when he put in the offer?

What are your thoughts?

were was this pod cast at was it one on BP ?  ya will let other decides on the ethics and morals of that discussion.. 

and the so called Value that wholesalers claim they bring to sellers .. 

Was the guest a wholesaler or a flipper?

Just another example of a wholesaler/flipper skimming equity from an uninformed seller. Sounds like she would have been better served just listing the property on the open market.

Originally posted by @Mat O'Grady :

@Jay Hinrichs It was the latest bigger pockets real estate podcast. 

Well with Bigger pockets members you will have half the audience think she is  a genius and want to emulate that and see's nothing wrong .. then you have the other half or maybe its a minority who thinks Geesh this is unconscionable profit taking and I sure would not like something like that to happen to my parents or grand parents.  Not to mention the way 95% of wholesalers work is totally illegal in all states but Texas anyway.. 

But this will get very polarized replys to this thread if it gets some life.. 

Wholesalers are now telemarketing hard so they get to talk to a lot of people and you have the I buyers but hey they close big difference when they risk their own money.. 

I had one call me here in lake Oswego.. and same thing.. very slick on the phone I played along.. of course they wont offer .. they just want to you to say what you will take or what you think its worth..  I blurted out 550k.. and of course I had an offer on DocuSign within the hour. 

when I started to push back they told me all the reasons why my 1.2 million dollar home was only worth 550k and please sign the docs etc etc.  this went on for a week..  

To be fair I have had others call and say hey your best bet is MLS for that house.. but if you want quick money here is what I can do.. I can get behind that kind of transparency.. but those guys up in Seattle that's were they were from.. I can just wonder how many of these deals they do.

Turns out on the contract they use my title company so I called over and talked to the Manager and in Oregon you must fully disclose to all parties if your doing an A to B to C deal they wont close them without full disclosure so that's good.. and that this company had closed 2 or 3 transactions this year with them..  The company encouraged me to talk to the closing company so they were not talking out of school. 

But Caveat Emptor is alive and well. 

 

Originally posted by @Mat O'Grady :

Is anyone else bothered by the latest podcast? The story about the woman who was reluctant to sell. The interviewee kept contacting her. She asked if the price he was offering was fair, she wanted to get an appraisal, he got scared because he knew the price he was offering wasn't fair, the appraiser didn't show up, she said she didn't want to sell, he calls her back and convinces her to sell. Then, he says he made over 300k, but had he waited, he could have made 1 million. 

It seems as though the original owner and seller may have been taken for a bit of money. I know that American has a free market and all. She didn't have to sell to him and etc, but is there any remorse for the woman who didn't know how much her property is worth and is trusting that this individual is giving her a fair price, but he thought he could earn $600k off it when he put in the offer?

What are your thoughts?

what podcast number I don't see one talking about wholesaling ? 

 

Originally posted by @Mat O'Grady :

@Jay Hinrichs  Episode 346. 

got it thank I just saw 34 units on the title did not see the 6 figure wholesale fees.. 

 

I thought the same thing @Mat O'Grady , it appears that transparency was lacking.

People should always be upfront with the seller and educate them on all the options if they truly want to help them and solve their problem.

Letting them know if they list it on the open market it’d go for x dollars more, or they can trade money for time and convenience.

@Mat O'Grady @ 1hour into the podcast this thing comes up. I was feeling you more until I listened to it again. Listen to it again analytically and you might change your mind if you pay close attention to all the details. He made her an offer and didn't tell her it was fair. It just made sense for him in buying all some 60+ units. They went for like 50k and he offered half. Offers like this happen frequently in REI and is bread and butter for many. They then expect counter offers. He said the lady contacted him eventually wanting to sell. Then he followed up with her, but she was nasty to deal with and strung him along for 6 months. After all this time she had agreed to a closing day. Her official appraiser didn't show, but she would have to be a fool to not have talked to family, friends or someone with a clue over the course of 6 months. I think he did the right thing in calling back to explain to her that he had invested a ton of time into lining up his investors and preparing to close the deal to buy all 60 something units. That's a lot of money for a lady who doesn't seem to care much about her property and she probably didn't do a good job of caring for the place if she didn't mind to sell call him and set up a day to sell not knowing the value and verbally excepting his offer. I totally thought it was shady, until I listened closer to the 6 month duration, her responding and saying she wanted to sell, and how irresponsible she was to not have an appraisal or clue after 6 Mo. Can't blame him for making her an offer to give her a big wad of cash for her multi for bulk pricing.

Yeah I felt the same way,  dude was like 20 had no idea what he was doing. Kept harassing her until she finally agreed but said she wanted an appraisal. Guy got all bummed but his wife said "call her again" so he laid on a high pressure guilt trip about how he already did due dilligence and his investors were waiting, so she just threw up her hands and agreed to the deal.

Apparently he added nothing to the deal, just wholesaled it to someone real who then sold it again IIRC. Lady lost like a million because she went with a wholesaler if I remember the deal right.

I remember thinking, this is who they have on these podcasts now? Clueless 20 year olds taking advantage of dumb clueless sellers? Guy was saying he was going to be a billionaire too, and talking about how he got busted using someone elses name to try and get a deal done. And of course his favorite book was Trumps book too.






@Mat O'Grady   Yes!  My thoughts exactly.  Seller was obviously not a professional real estate person, and she correctly had the clarity of mind to get an appraisal, but then that got delayed (keep in mind she was in no hurry or mindset to sell) and he talked her into moving forward anyway.  A legal transaction I suppose but not really fair or ethical if you ask me.  

@Nicky Reader

I was listening to this episode on a late night walk Friday and basically went WTF at all three of these same points. Yeah I think it was not one of my favorite guests.

My general thoughts were that the guy is a go getter but seemed to be lacking in the character department. Nothing against “wholesaling” here but I’m definitely not pro-trickery.

@Account Closed I hear what you are saying, maybe there wasn't enough information about the situation for me to feel comfortable about how it went. It sounds like she asked him if the price he was offering was even fair and by him not saying it wasn't is implying that he thinks it is. I have made low ball offers on properties that needed a lot of time and money to get up to market price. These properties wouldn't sell at top dollar because of the condition they were in and the people who I made the offers to were the actual people who had purchase the property in the first place. Again, we don't know the back story, but it sounds like this lady probably inherited the property somewhere along the line and she didn't know much about it. I feel that means that she was relying more on what the buyer was saying. Being nasty to deal with could mean he didn't like talking to her because she was not willing to listen and would just say no without a discussion. But, lets assume it means she was being rude and calling him names, does that mean she deserves lower respect and honesty? I guess you are right that it was irresponsible for her to not look up the value of the property or to talk to other people about it. I have never been in this situation, but I think I would feel like I should provide a bit more information to her even if she was being mean and irresponsible. Or, if I thought she was going to counter and she didn't, maybe I would have said this is what I could really pay and then give her a higher price. I don't know. I have never been in that position and I don't know all the information. Maybe the buyer really had no clue how good his deal was until he tried to sell it to someone else and by then he thought it was too late to or maybe he was just happy he got the money. 

They’ve had some absolute beauties on the last 100 or so podcasts. I haven’t listened to the one in question but I remember a few months back they had a young guy on there who was basically running flop houses in Nashville... I think. Some of the guests are definitely becoming questionable.