hey guys, I have a question. I ran across a way of virtual wholesaling online using these auction sites like auction.com, xome.com, hubzu.com. (the auction flipper) sure you guys have seen it advertised before. Does anybody have experience using this way or a similar way of virtual wholesaling? I'm sure this topic has been talked about somewhere, but I can't seem to find anything on it. I already do local wholesaling, but am looking into virtual wholesaling.
If so, could you explain some pro's & cons. As well, as talk about in full detail the experience you had & what you did. And finally, would you recommend it?
@Jacob Robinson I have experience with Auction.com and Hubzu. You will need to check the terms of service of each of the sites of how their auctions work to figure out what you can and can't do. One thing I'm almost certain of (like 95% certain) is that you will have to double close and will not likely be able to assign your agreements. This means you will likely have to use a transactional funding source adding to your transaction costs and lowering your margin.
Also, watch out for fees you may not even think about (because they don't occur in a "normal" transaction) like Hubzu's "Technology Fee" which can be sizable. If you end up not closing on the transaction, there are serious penalties. Not saying it's not possible but just be aware of the rules of the game before you get started.
Hope it helps!
You 100% cannot I signed contracts
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