real estate scams?

10 Replies

okay so, there is this property that i am looking at. basically everything seems to be going wayyy toooo easily.

i got my lead very very easily.. basically someone from this website gave it to me and it was very random.

she said she just needs to get rid of the house because she cant pay for it anymore. its all paid off.

she said no leins besides a $9500 backtax. she wanted 80k for it and i offered 65k and she said it sounds good she just needs to check with her husband.

something about this property i am skeptical about though and i dont know what it is. (probably because the way i got the lead. it was just way too easily like i said)

all i am going to be doing is wholesaling the house. but i dont know if there are any scams out there that i just dont know about. if you know of any scams please let me know

If this is a million dollar house that they're selling to you for $65k then yes it may be a scam. If it's an $80k house that they're selling you for $65k then it may not be a scam.

Not sure what to tell you, sometimes things just fall into place.....

@Chris K.

maybe its just noobie worries

Hi Derek,

BE sure and do your due diligence, check your majors, HVAC, Plumbing, roof, electrical, check to see if the county denied permits for remodeling, or has any existing conditions for remodeling, like red tagged HAVAC units, or sewer lines....Not trying to muddy your deal, sounds good if you don't have any of these issues lurking under the surface. Man I hope you turn a good deal on this one.

Ask advice from one of your local buyers

@Account Closed It may not be a "scam" per se but what if it's just a bad deal? If you get it for 65K and its only worth 80k then theres not much of a spread to wholesale it after you add your fee and any repairs/updates/closing costs/holding costs. Whats the ARV and estimated rehab?

As @Joe Butcher said, we need to know the ARV and repairs needed to know how good of a deal it is.

ya i dont think its a scam anymore. just a motivated seller

delete delete delete

@Derek LeBlanc

This is how I would handle the situation. I am not sure how much of this you have done, but its just the way I would do it if I was skeptical.

1. Visit the property to get pics and access the amount of work needed.

2. Check the comps (I would have them already) and see if it is worth the price and work and if you can resell it.

3. Access the neighborhood.

4. If the numbers work, put in under contract.

5. Then get a title search done. That will uncover other problems.

6. If you have a clear title, decent property, numbers work, then introduce it to your buyers.

Maybe there is something wrong, or maybe you just caught a break. I do not see anything wrong or skeptical, but I am only going with the information you provided.

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