Getting Kind Of Fed Up With BS From Sellers And Wholesalers

9 Replies

Anyone getting tired of the bulloney people say when trying to sell a property. It comes from Realtors, "wholesalers", homeowners, etc. Twice this week I was approached by people offering me "deals" with totally bogus inflated CAP rates. One is a local "wholesaler" that forgot to include maintenance and CAPEX in his calculations. Not only that, the place he is trying to push is a dump that is bringing in $650 per month. He states that as soon as the lease expires the new owner can get $875 per month. His assumptions are so way out of line it is ridiculous. Add together his bogus rental income and his items he used to calculate his operating expenses and the deal is lousy. I immediately opted out of his emails (though I didn't sign up to begin with). Got almost the same bulloney from a Realtor that conveniently left out vacancy and maintenance on the sheet they provided me. This was a broker...and I would bet they know better. The "wholesaler"...I don't know. Either way, there is a lesson to be learned: do your homework. It doesn't matter what or who is offering a property for sale. It doesn't matter what their credentials are. What matters is how truthful are they being, and how accurate their numbers are. Be careful.

Teach them, let them know what they aren't doing right. Call them out on what they are doing wrong and hopefully they will take the advice, if not then good riddence. 

Why on earth would you be discussing cap rates on a single family property?  And capex is not an operating expense.

      I have came to the conclusion that most if not all of my ancestors were mushrooms.

We thrive on BS !   Its such a  pleasure to run across so many who are trying to HELP me  with their pure BS deals. 

  

Originally posted by @Bob Bowling:

Why on earth would you be discussing cap rates on a single family property?  And capex is not an operating expense.

This is how they are marketing:) I am finding it easier to hit the spam button when dealing with most of them but the brokers should or do know better!

Unfortunately that's something we can't control but we can control how we deal with it and that's being a step ahead and not being ignorant. It's pretty sad but true

It's a sad but true reality. I responded to a post on Craigslist this past Monday. I only want to talk to decision makers so I always ask the person if they are the person on the title/owner, if they are an agent, or if they are a wholesaler. The guy responds and said something like "I'm marketing the property." I asked him what he meant by that and of course I got no response.... 

Where there is a low cost of entry, and the ability to spam, people will spam.

No different than people on facebook selling their wraps, herbalife, monavie, or any of that other junk. Easy enough to determine it's a time waste and just move on from it. 

Easy enough to deal with a wholesaler who plays games.  Just string him along with vaguely encouraging noises until his contract expires. 

Better yet, put a partner approval clause, or an inspection contingency, in your offer and then back out at the last minute.

If he whines, tell him to look up the meaning of the word, "karma."

one time someone asked me if they can "wholesale" my property outright.  LOL  

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