Updated about 10 years ago on . Most recent reply
So you think you're a wholesaler?
I had to post about this experience because I'm half confused and half mad!
I had been bidding and watching a HUD property for a few months, waiting for the right price. Finally it had been lowered to where I needed it to be. After a few days of bidding, another bidder got it. OK, no big deal.
I'm cruising Craigslist a few days later, and there's the house! Someone is trying to sell it!
HUD's list price was $49,000. Assuming he's under agreement for ~$40,000, his all-in will be $42,000 give or take.
I emailed him and asked what his price was, and that I had been bidding on it. I figure if he's trying to tack a few thousand on it and turn it, it might be worth it. His asking price... $64,900!!! So it was on the MLS for $49,000 3 days ago (and actually still shows as active), you don't even own it, and you're trying to make $20K+? Who's going to go for this? At his asking price the numbers don't really work as the ARV is $95K. Is he trying to get a retail buyer paying cash since the house isn't able to be financed as-is? I told him I wasn't interested at $64,900 and I'm not sure what he's trying to accomplish trying to make a $20K margin. He told me that it was a HUD house and not everyone could bid, which I'm not sure if he thinks I'm stupid or he doesn't understand, but that's obviously not true. I told him the numbers don't make sense for an investor and the odds of a cash retail buyer coming along are slim, but best of luck. He asked if I would like to be added to his buyer's list but I politely passed telling him I need REAL deals!
What is this guy trying to accomplish? Is he new and thinks this is a viable strategy? I certainly don't think it's a viable strategy. Do you think he has this deal tied up for $500 and doesn't even have the money to close it? I'm hoping it becomes available again, but we'll see.
Most Popular Reply
All due respect to the OP, this has more to do with the State of BP than his plight.... (and @mark Gallagher I do feel your pain)
But when I see posts like this these days, only one question comes to mind.......
Should I just grab my popcorn and wait for all the usual suspects to turn this into a real ranting wholesaler bash, or just start ignoring my "wholesaling" keyword alerts......because this has gotten so boring.