When the seller sees the craigslist add..

8 Replies

So I'm in a bit of a pickle right now. I have a house under contract and the seller has found the add on craigslist selling her property at 5,000 above what she's receiving. I'm hoping you guys can help me get out of this predicament!

I've taken the approach before of explaining to sellers that our job to connect them with buyers/investors, but people have been telling me it's a wrong strategy and that they only infer they will be buying and that they work with other investors sometimes.


Any ideas on how to frame this up to the seller that will give her comfort? Part of the problem is that it's listed at 25k (the price she was really pushing me for) when I got her down to 20.

I'm leaning toward just explaining that for this particular property we would like to connect her to investors interested in buying the property, but that we also do not work for free... Any thoughts?

IMHO this is a "you reap what you sow" situation. Best to be very up front when wholesaling and say "I'm not buying your house. I'm going to find a buyer and I will make a profit on the transaction." When you way "they only [imply] they will be buying and that they work with other investors sometimes", you're being deceptive. Deception is a bad way to do business.

Wholesales put houses under contract so they are a principal to the transaction. That lets them avoid unlicensed brokering, which is in fact what they're doing. That doesn't mean you should deceive the seller about what you're really doing. Fess up to what's really going on. You may lose this deal, but it doesn't sound like you actually have a buyer on the hook anyway.

What is the value you provide to the seller?

@Jon Holdman I think you're definitely right. As I said, that's not how I had been framing it up, but I followed the advice of the local people doing it full-time. Definitely a lesson-learned.

@Marius G. The value I bring to the seller is taking care of all the leg work in selling their property quickly at as high a price it can be so that all parties involved win. The seller is in a situation where she needs money quickly and given the current state of the house would be hard-pressed to market it to potential buyers. With my connections and expertise I believe I can get rid of her home quickly and efficiently.

I typically lay it out on the contract, my plans are to sell, assign, lease, or rent the property for profit.

You can simply let her know your plans are to immediately resell the property to another investor, she can immediately get the 20k she signed the contract for and you profit by bringing a partner/ investor to the table.

You might try Craigslist ads that are less specific about the property. like-ATTN Investors-great deal on 2-1-1 in XYZ part of town near Main St and First St. intersection. Only 25K Call for address and pictures.

If you are marketing to investors looking to rehab, etc. its more important to get them to call so they can go on your list for all properties you have or will have, not just this one.

Where are the lying wholesale gurus, what's their solution?

Glad to see the ethical responses.

Had you been more upfront in your first meeting and pointed out that your efforts could be quicker, less hassle, less costly and done in a timely manner than listing the property conventionally, you probably would not be suffering this dilemma.

Oh, what a tangled web we weave when first we practice to deceive. (My grandmother, have no idea, forgot who gets credit for that) :)

Originally posted by @Alex Huegle :
@Jon Holdman I think you're definitely right. As I said, that's not how I had been framing it up, but I followed the advice of the local people doing it full-time. Definitely a lesson-learned.

@Marius G. The value I bring to the seller is taking care of all the leg work in selling their property quickly at as high a price it can be so that all parties involved win. The seller is in a situation where she needs money quickly and given the current state of the house would be hard-pressed to market it to potential buyers. With my connections and expertise I believe I can get rid of her home quickly and efficiently.

I really don't want this to sound rude (especially cause I certainly am not more experienced or savvy at wholesaling than you) but the fact that you marketed her house on craigslist would make it very hard to make a case for you having special 'connections and expertise'.

Not saying that you did was dumb in any way, but I'm sure you're aware of how this must look to her.

I agree with Stefanie in regards to Craigslist. We have a buyers list that we send out houses under contract too. Craigslist would be a last resort. 99% of the time if its a good deal the investors will buy the house quick.