I sell manufactured homes and I saw a listing of one of my homes with the same pictures, different description and triple the price on CL. I confronted the guy and he seemed to think he was doing me a favor. I got him to take it down, but my question is is this a common practice in wholesaling? Acting as the middle man on a property you do not own, but pretend to own, without even notifying the real owner? And do I have any remedy if he does it again?
I would contact the police. Record the conversation if allowed in your state. He is attempting to take someone's money by "selling" your property.
It seems to be standard practice for a lot of people and the way the Make Fortunes in Real Estate with No Money gurus advise people to do.
Someone else on BP had the same thing happen to them not long ago. I can't recall if they were an investor/agent or what. However, its quite unfortunate that craigslist is such a scammers haven, as its otherwise a pretty good website to network and advertise, for free I might add.
I'm not an employee or afiliate of craigslist, btw, just my coin.
A relative of mine had a house for sale in PA. It was vacant. Somebody in CA posted on CL with the same pix and the house for rent. Told prospective tenants to go look at the house and if they liked it to send him the rent & security in CA and he'd send them the keys to move in.
In another similar case a realtor had a house listed for sale and somebody else listed it for rent and potential renters came by the house bothering the owner to see the inside so they could rent it. The house was not for rent.
I had this happen on one of my rental homes. I contacted them and let them know I had reported them to the authorities for Internet fraud. I've never had it happen again.
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Just to clarify these guys aren't wholesalers. They are just idiots.
There are idiot wholesalers Tim, should not confront anyone! Copy the link and contact information and contact your state RE department. You might explain the RE wholesaling tactic to ensure they get a clearer picture of what can be going on.
I don't mess with CL, use to flag scam or illegal ads.
Happens all the time. There's a few in our area who only blast out other peoples property with permission and there's a few who do not. Once in a while I get the ones who raise the price but the trick is to have YOUR postings on top of everyone else's. That way even if they do it's at the bottom of the list. The ones that do raise the price have no idea what they're doing and they eventually phase out anyway.
I originally took offense to it but told myself there's worse things that can happen in life.
This is very common amongst scumbags. You can burn your phone number into your photos for free with this site:
Advertising any asset for sale that you don't own can lead from false advertising to fraud, wholesalers can't offer a property for sale, even with permission without a license, what they can offer is the contract to buy the property.
Yes, they are many who do much worse.
it would have been interesting to make an offer and see how it went.
One of the banner advertisers on BP who was selling TK and is not longer on BP did the same thing to clients of mine in Chicago... just took their inventory marketed it without permission then scared up a buyer and then wanted a commission... pretty strange.
I think over time the guys offering contracts are going to run into the same issue. its just a RUSE to sell real estate without a license.. I just don't get it.. not sure why folks that want to sell RE or flip it just don't get a license to engage in RE activities there are many bonuses that come with being licensed. Not to mention not running afoul with the state agencies.
Its the same with Unlicensed PM's who think they can have a master lease and end up running a big PM operation....I had extensive conversations with the DRE investigator in MS over this issue and again he said its just a Ruse and they would shut down anyone without a valid brokers license if it appeared they were just acquiring multiple rentals on leases then releases them as in acting as a PM without a license.
The Real Estate industry as a whole needs to help the government crack down on all this unlicensed activity by turning in these unlicensed people... that just try to flip contracts or homes without ever buying them... A few of these bad apples can really spoil it for the one's that do a good job.
Yes, but from what I see, most wholesalers couldn't pass a test, even if they do get all the questions to study, multiple guess, instead of memorizing the answer they'd memorize the letter to the right answer that's less trouble.
That's the attitude of most in RE, it is a self regulated industry, if you don't then Uncle will. :)
Just a quick response to some of the above remarks, and yes I could pass a test...if I chose to. I am by no means saying what was done in the original start of this thread was correct.
But Wholesaling RE in general is no different than what is done on daily basis...via trading Contracts of ABC stock, Wheat Futures, or a bank writing a Mortgage on a house. For the most part it is all done with leverage be it a $10 deposit to get a Contract for a House or 10:1 on a trading a count to purchase a Futures contract or loan from the FED based off bank deposits. It is all done to Leverage up for a Profit!
And when that leverage is called...well we have what happened in 2008!! Were they not licensed and regulated...that helped, didn't it?
@Jay Hinrichs I think if the wholesaler offers TRUE CONSIDERATION for a contract, or option, that they would win a legal battle, if it came to that. There is a lot of contract law on their side. It is the guys who pay $10 down and have no intention of buying if the deal falls through that will eventually get burned.
I will have no problem with having a license, when I live in the state I am investing in (Florida). But to be honest the licensing is not state run, anywhere that I know of. It is run by a clique of realtors who want to protect their piece of the pie. The regulation started with good intention, but has gone well beyond the original intent. Like most things that the government gets involved with. They over-regulate in some ways, and ignore other aspects that need to be regulated further.
Sorry to hear that. Yes, I've heard of this practice done even to other members here in the BP community. Unfortunately, this is one of the drawbacks of having the ability to market online. Hope you can correct the problem soon!