Scam? or Beginners luck?

[Catherine Davies]

I was recently contacted by a man who said he has fallen behind on his mortgage payments and asked me to buy his house. Almost immediatley he let me know the exact amount he owed to the bank and described the property and asked if I would buy it. As I am new to RE investing, my immediate concern was “why me?†– felt there was a “scammy†feel to it. He said he wants what he owes on the house and doesn't care to list it (even though he could get double for what he is asking). When I inquired how he was referred to me he stammered “someone told me your name, I don’t remember his nameâ€. However, as I am just starting out, my network is rather small – and don’t see a referral for this work as a likely scenario – I see it more likely that he found my name off of this site or a similar site and is preying on newer investors/agents. Has anyone else has run into a situation like this? Beginners luck or scam? Appreciate your input!

[Jon Holdman]

Does he have a plan beyond wanting you to buy the house? Specifically, leasing it back to him? If so, it might be a scam. A sale/leaseback can work out very well for the owner and bad for the investor. If he's up to something, this is the likely scam.

OTOH, networking is a big part of this business. Talking to a lot of people can well result in a deal being sent your way. Assuming he's willing to sell, and you do the transaction properly (specifically, doing full title work) this it may be totally legit. If he wants to do a deed at the kitchen table and starts getting worried if you start talking about going to a title company then there might be other liens, judgments or something else involved.