I got my 1st virtual wholesale contract now what?😰
Rental Property Investor · Nyc · Member since 2020 · 51 posts · 72 votes
I’m from NYC and I got into virtual wholesaling. I got a property under contract in kiln, Mississippi with a nice spread... I’m sourcing a way to market this property to investors.... any suggestions?
Doing deals virtually, sight-un-seen is here to stay. Last I checked, Mississippi isn't on Mars. Every market has it own idiosyncrasies. Hopefully someone from the area will offer to help a fellow investor out in stead of telling you what a mistake you've made.
@Donna Coffman I have all
My text too and I did not know what went down and she did tell me her face book got hacked. Direct message me so I can give you my number
@Luis Serrano I would reach out to the title company and find out who this Victoria person is. Her account has been removed and it sounds like she didn’t work for that company?
@Brian Pulaski believe me I’m trying to find out... this is bad... this is no way to do business. Im sad, stressed and angry all at the same time.
@Brian Pulaski believe me I’m trying to find out... this is bad... this is no way to do business. Im sad, stressed and angry all at the same time.
No, this is typical wholesaler BS. Take note.
Maybe you do the right thing and send Donna a check for $5000 to make her whole?
@Steve Morris sorry you feel
That way.
Sorry someone got screwed by a deal you were involved in.
Or are you going to deny: "That same day a Luis posted on the internet of the same house which stated SOLD you lost out!"
You can make it right and redeem yourself.
Sorry someone got screwed by a deal you were involved in.
Or are you going to deny: "That same day a Luis posted on the internet of the same house which stated SOLD you lost out!"
You can make it right and redeem yourself.
Him being involved would be one thing... he happens to be the one who created this deal.
@Steve Morris sorry you feel
That way.
man, this is EXACTLY why states require licensing, and why industry reputation for wholesaling is so poor.
You probably just wanted to make a quick buck but you got involved with scammers and now someone is out felony amounts of money.
Angry people are contacting law enforcement and posting in public forums about a swindle, with your name all over it.
As they say: "i dont think you really understand the gravity of your situation"
Sorry to hear what seems to be happening. The biggest shock I have is the title company. I would think instead of threatening you with a lawsuit, they would want to get to the bottom of someone using their name.
Sorry to hear what seems to be happening. The biggest shock I have is the title company. I would think instead of threatening you with a lawsuit, they would want to get to the bottom of someone using their name.
Kind of seems like this deal was taken by a scammer... this is a very enlightening thread with regards to why virtual wholesaling is NOT for everyone.
Sorry to hear what seems to be happening. The biggest shock I have is the title company. I would think instead of threatening you with a lawsuit, they would want to get to the bottom of someone using their name.
Kind of seems like this deal was taken by a scammer... this is a very enlightening thread with regards to why virtual wholesaling is NOT for everyone.
agreed, this is wild! Everyone knows about the hackers who will just send fake wiring instructions, but here it looks like the newest fraud model is actually just outright creating a fake title agency and targeting wholesalers , who frequently have no idea what they are doing (exhibit A here) and far less likely to see red flags like a fake title agent from a bogus company apparently offering to help find a buyer. (The fake title agent was thus also brokering without a license, ironically)
I just saw that the “title company” was based out of MI, not anywhere near the subject property, crazy. Also scary to think it only took one forum post from the assumed scammer to take over this deal and steal a lot of money (assuming what is being posted is accurate).
Hopefully Luis actually tracks down what happened and tries to make things right.
Real estate contracts, by definition, are an arm of the law.
Only licensed attorneys were allowed to handle real estate transactions in most locations up until around the 1950's I believe (at least that was the case here in CO with Conway-Bogue 1957). Having an attorney handle every real estate transaction became unreasonable at some point in time because there were too many transactions for the number of attorney's. In some rural areas especially, there were only one or two practicing attorneys, while some counties didn't have any at all. So having an attorney present for every real estate deal was deemed impractical.
The court decided that in a very limited manner, a licensed real estate agent could work with contracts on real estate without an attorney. Real estate agents became a thing and they were able to essentially practice law under limited circumstances, in a very limited capacity and with ethics training, educational requirements, insurance, using pre-approved forms and under the oversight of a regulating body that can levy fines and revoke licenses. Brokering real estate without a license remains illegal.
I hope this situation works out for all involved. From the sound of it, it seems like an example of why real estate is a regulated industry with licensing requirements in place to protect the public. There are instances of fraud even when everyone is licensed of course, but they are much less frequent and in those cases there are protections in place like insurance as well as repercussions for those involved because they are regulated by a commission. A licensed agent would have been much less likely to be fooled by a "digital, wholesale friendly" online title company/total red flag. I think as wholesaling and situations like this become more common, we're bound to see more enforcement of the laws that prevent unlicensed individuals from brokering real estate.
@Luis Serrano If this works out for you (and I sincerely hope it does, honestly, while I also hope Donna gets her money back), I think you should strongly consider not wholesaling/brokering without a license any longer and consider completing the educational requirements to get your license in order to broker real estate above board as an agent. I think you'll like it better, you'll probably make A LOT more money (especially because you live in NYC where property is expensive and commissions are big), and you'll be much less likely to get into trouble/ be involved in a lawsuit or be responsible for someone getting scammed/find yourself in another situation like this, especially because NY is an attorney state where I believe attorneys are still involved in every deal. Good luck to you and all involved!
I'm not a lawyer, this is definitely not legal advice and I'm definitely not the cops or the type of person to report anyone, just a dude on the internet.
@LuisSerrano congrats for taking your first action! And based on many of the snarky comments here, kudos to you for having the fortitude to put your questions out there. I just wanted to say, not everyone dislikes wholesalers. We've actually built some good relationships that way and are happy to pay them a fee to do the leg work to find our next property so we can focus on whatever we're working on at the time. The wholesalers we've worked with are genuinely good people just trying to get started. I'm constantly impressed with the amount of time they spend with the sellers - I know I wouldn't have the time or the patience. So if you do it well, you can definitely be providing a service for all parties. Investing out of state in any format (wholesaling, BRRRR, flips, turnkey) has its challenges. But you know what else is true? You can find someone who is doing all of those things successfully despite those challenges. Maybe even because of those challenges because so many people aren't willing to take on those challenges. As for the property you're looking for a buyer for, have you reached out to the local REI group? Almost every town or region has one these days, even a virtual meet up is great when you're looking to make connections. It's a great place to meet people who can become part of your network, find some boots on the grounds, and you will likely find potential investors there who are interested in off market deals. It will also help you learn more about the area. As some comments mentioned, there can be a lot of nuance in any given market and you need people who know the area. Most of the time, people are really willing to help each other out. Good luck to you!
Most of the time, people are really willing to help each other out. G
Like maybe throwing back $5000 to someone that got ripped on his deal?
@SteveMorris you presume a lot. Are you insinuating that if someone is selling to a wholesaler the wholesaler (and the end buyer) are ripping the seller off? I'm sure that happens sometimes. And sometimes, the sellers are getting what the house is actually worth. We have not built a business model on ripping people off and neither has anyone else I know who works with a wholesaler.
@Luis Serrano congrats! No doubt your hustle and determination helped you sign the purchase and sale agreement! This is exactly the type of thing Brandon Turner loves to talk about. And I’m sure you helped the buyer by solving a headache for them.
A lot of wholesalers say on the podcast that finding the cash buyer is the easier part — assuming the 70% rule was satisfied (or close to it). Sounds like that isn’t an issue here.
I would recommend taking the same level of energy to network with agents and staying diligent on BP. I’m sure some of the fantastic members here are interested in analyzing this opportunity to purchase themselves (long distance or local). Best of luck and congrats again!!!
I must admit. Reading this thread was more interesting than scrolling Netflix options.
@Luis Serrano congrats! No doubt your hustle and determination helped you sign the purchase and sale agreement! This is exactly the type of thing Brandon Turner loves to talk about. And I’m sure you helped the buyer by solving a headache for them.
A lot of wholesalers say on the podcast that finding the cash buyer is the easier part — assuming the 70% rule was satisfied (or close to it). Sounds like that isn’t an issue here.
I would recommend taking the same level of energy to network with agents and staying diligent on BP. I’m sure some of the fantastic members here are interested in analyzing this opportunity to purchase themselves (long distance or local). Best of luck and congrats again!!!
LOL! did you actually read this thread before posting???
@Nicky Reader that's what is probably gonna be the key to the puzzle..."Victoria" told Donna she could go take a look at the property, said someone was there already taking a tour but most likely would be gone when she arrived, to let her know when she arrived and she would give her the location of the key...when Donna got there she contacted her and "Victoria" had to reach out to whomever to bring the key back, some guy that Donna didn't feel the need to be able to identify down the road...hindsight being what it is..another lesson learned
Thank you @Nicky Reader @Brian Pulaski @Steve Morris @ Steve K @Alan Grobmeier for the attention you've all given to this thread, I've heard that real estate is very competitive, but I've never really heard much being said on people in this industry going hard for what's right...you guys are the truth in my book! Thank you!
@SteveMorris you presume a lot. Are you insinuating that if someone is selling to a wholesaler the wholesaler (and the end buyer) are ripping the seller off? I'm sure that happens sometimes. And sometimes, the sellers are getting what the house is actually worth. We have not built a business model on ripping people off and neither has anyone else I know who works with a wholesaler.
Bonnie, check out the last few pages of the thread. It appears the buyer was ripped off in this case, by a fake title company (from what we can tell).
Yes Steve K. I am the person who is the victim of an elaborate scam and fraud! I do appreciate all of you commenting on it. I have been told by the title company that Victoria Lansen represented all all social media that if I say anything about their name they will contact an attorney and sue me for slanderous remarks. I am out a lot of money (over $10,000) because of this scam and my trust level in people has gone to 0. Was I naive? I don't know. I do know that I checked everything out, I researched everything and I even asked questions. It is said that their were some liens against the house and that is why Luis said he pulled out (although he put "SOLD, you missed out! " on the house I asked about Liens and was told their were none, that the owners just owed 2020 taxes. I was also told by this Victoria Lansen that the property was a gift, the people had moved and they just wanted it sold. I was also sent via Email a contract to sign with her name and the company email address on it. She told me an Inspector from Louisiana would do the inspecting. Should red flags have gone up. When they did I researched more and questioned more. I was also sent directions via email to wire the money. It had an account number, a routing number and it was to Wells Fargo. SO I tried to be careful in all of this and the police said it was an excellent scam and they covered their tracks really well. Now the title company emailed me and said they were investigating it and her profiles would be taken down. But it is funny because the lady from the title company emailing me said she is the owner/CEO but on one of Victoria Lansen's profiles with BiggerPockets she said she was the owner. SO now who do I believe.
The ultimate goal now is to stop this because a lot of people are hurt because of this. how many more has she scammed because she has her name posted in everystate as a title broker for this company under National Directory of investor Friendly Title Companies. Every time I find her listed on something and let the one title company know within minutes her profile is moved. I believe there is more to the story there then what is being told.
I am embarrassed, sad and feel like a loser because this happened to me. Financially , I lost a lot of money and the title company told me that also. They also told me to let the authorities handle it.
Thanks to all , you guys all seem nice and I do appreciate it. Dewanna brought it out there and I just figured I would clarify a couple of things.
I have been asked by Luis Serrano to contact him verbally and right now I am not willing to do that.
Finally, I have laughed a little instead of crying. I am not a vindictive person or mean spirited person. I help people when I can.
Now for a little humor and this is strictly a "funny" Does anyone on here want to Do a "go fund me account" to help me get my money back that was taken from me in such a conniving and cunning scam!
No, I know I will never get my money back and it is gone. Although, it hurts I will be OK. What is most disappointing is my daughter lost out on a cute house and a new beginning, and I lost my trust and self esteem for a bit! Had it happen to someone else they may not be. That is why I want these people to get caught. I can only say I hope God forgives them.