Baltimore Buyers Beware

[Alan Salgado]

NEVER, EVER, EVER Submit an EMD (deposit) directly to a wholesaler. Be suspicious of anyone requiring or even asking you to send deposit money directly to them instead of the contractually agreed upon title company.

I just declined to offer after doing just a little bit of research on a property and the wholesaler:

The property was a Short Sale that showed as 'Under Contract' in MLS. ARV was $110k over the WS asking price but $60k more than MLS listing price and the place was spotless and beautiful.

The wholesaler wanted 8% deposit wired directly to him and a 60 day closing. I would not be named on the title instead I was buying an LLC. I spoke to him on the phone and he acted like it was 100% going to close. I then did my research over the next 24 hours and found more than a few red flags:

Current Owner was in default on a 100% financing loan.

A simple call to the Title Company revealed the offer was not yet approved.

I then wrote him an email asking for the HOA bylaws, he could not produce them. He didn't like me asking because he responded that maybe this deal should go to someone else.

My next email was to offer his full asking but only with a few contingencies: $2500 EMD directly to the Title Company and I get 24 hours to review HOA bylaws. He declined and said it was unacceptable.

I then Googled his name and company to find numerous complaints on BBB, Yelp, and Ripoff Report. He has a pattern of holding people's money and never paying back or repaying in small installments. I also found an email someone posted from his Title company saying they will not hold any EMD checks for this guy. VERY Highly Suspect indeed! So glad I stuck to my guns.

Not all wholesalers are like this. I'm sure the vast majority make their money at closing. My advice here is please stick to your due diligence and your rules of doing business. You  may miss a deal or two, but the reality is you will safeguard what is most important in business.