Bad first experience wholesaling/flipping

20 Replies

So I had gotten these two distressed properties under contract with this seller in tarrant. Was so excited because I wasn’t expecting to get two for my first time. But the plan didn’t go my way and it took me too long to find a buyer for the properties felt like I’ve wasted time. Can anyone relate?

I can relate to the sellers whose time was wasted with another wholesaler who did not perform I hope they at least had an emd to keep for their troubles 

I think a good rule of thumb is to be willing to purchase the property yourself at the price you reach with the seller.  If the deal would have been worth it to buyers, you would have been able to wholesale the property because it was probably over priced.  Sellers need a lot of motivation (ie problems we need to solve for them) before they will sell at a price that is profitable.  You might want to try and ask an experienced investor if you can look for him/her.  Ask where they like to buy and learn from them.    

You need to give a whole lot of info for us to see what went wrong.

Did you see a podcast and when they said anyone could do it you Believed them....................

She didn’t get an emd She lost time not money plus she wasn’t doing anything with the property anyway ie. selling,renting,or remodeling, plus I Did not have it like that. But still here for the experience because I know it could have been done. At the end of the day I don’t think it was the price because I was willing to accept any offer on these because I got em so low. I thought this business was about making mistakes lol and I am looking for a mentor that’s y I’m on here sharing my story

Originally posted by @Tiyon Mosley :

She didn’t get an emd She lost time not money plus she wasn’t doing anything with the property anyway ie. selling,renting,or remodeling, plus I Did not have it like that. But still here for the experience because I know it could have been done. At the end of the day I don’t think it was the price because I was willing to accept any offer on these because I got em so low. I thought this business was about making mistakes lol and I am looking for a mentor that’s y I’m on here sharing my story

 LESSON number 1-  its always about the price.

LESSON number 2- refer 2 lesson # 1.

The problem is you put properties under contract with no intention of purchasing them did the seller agree to that

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

I did intend on purchasing them just not with my own money lol.

I’m still learning as I go I try to do a lot of it on my own experienced vets sometimes don’t like to lend helping hands or offer good not sarcastic advice

A lot of people who claimed interest in them never really got with me about price. it was, “what’s the address I wanna see them” then go see them and don’t like them I guess. If I had the money I would have bought them myself but like I said I don’t have it like that yet. Had someone given me an offer lower than I got them for, I probably would have accepted it and just renegotiated the asking price with the seller because I’ve built enough rapport with them and for me it wasn’t really about making the money for me it was about finishing the process and helping her with her situation but no offers to counter offer. They were two houses with an arv of about $41k-$50k asked $20k for the pair and the repairs I was told may have been about $40k but I beg to differ but I’m also not a contractor so idk.

By your own admission this is what is called FRAUD BY INDUCEMENT.
Typical for FRAUDS AND SCAMMERS!

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

@Jay Hinrichs I think you are absolutely right. The thing is I sent out letters and got a call from this woman and didn’t really mean for that piece of marketing to get to her and figured I try to give it a shot for my first time backfired and now the backlash from my story on here lol

Just from my reading your post...

ARV of $41-50K... that's a huge swing in ARV. You need a much more solid understanding.

$40K to rehab, but you really didn't know. You need a much more solid understanding.

You offered $20K, thinking it would cost $40K to fix up ($60K total) for property worth $41-50K... who would ever even make an offer on this deal?

Truthfully, such cheap properties are probably never worth the investment, as @Jay Hinrichs stated, rehabs cost more than they are worth. Stick with higher priced products.

@Tiyon Mosley

Lots of people bashing on you, and for good reason. It does come down to understanding rehab costs and ARV. If you truly have a 'deal' then it's pretty simple finding a buyer. Terrible wholesale deals are a dime a dozen. At least you didn't try to wholesale someone else's deal or wholesale MLS garbage. Live and learn. If you want a checklist of things you need to do before wholesaling, I can send to you.

You need to stop with the fraud, even if it's unintentional. You can get in some serious trouble overpromising and not delivering.

@Ray lai thanks for the feedback appreciate your honesty. I don’t doubt anything you nor the guy that I️ can’t tag in this above you is saying. But I’m still gonna stick to the “fraud Marketing” I️ use a software that does it for me, I️ don’t see the terrorizing in that so yea but appreciate your feedback

@brian Pulaski thanks for your feedback I️ was thinking the same thing about what you said on the arv except I️ got the pair for $13k total. But this all seriously helps for future reference. and the fact that I️ was only asking $20k for the pair I️ didn’t get a counter offer I️ couldn’t believe I️ had to have gotten them even lower, Maybe on the ARV I️ definitely have to get better with that but I️ thought I️ could give it a shot in the dark and got shot back lol it’s all good I️ love it. But turns out the seller got a buyer on it herself for $15k for just one “supposedly”

That OP states they had a "bad experience' in the deal. I wonder how the seller would characterize it, and if they would trust the OP again. When people have no problem using lies and deceit, I think they build a reputation quickly...maybe not a good one though.

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

On top of all this I wouldn’t call it fraud if I️ disclose everything I️ plan on doing with the property I️ don’t hold back

Sorry @Tiyon Mosley I couldn't follow the last couple of posts, seems like you phone or computer is doing something goofy with your responses, making them almost unreadable. Not sure what the numbers work out to be, $13k each, 20k combined, she sold one for 15k...

I say just move on and focus on higher priced products, fine tune your ARV and rehab estimates and make sure the seller knows 100% what you are doing with their property.

You might want to check your state laws for unlicensed brokering and what is legal or not.

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

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