All Forum Posts by: Patrick Scifres

@Michael Mcghee Great questions.  Yes, my buyer told me had called the phone number, left a voicemail and was not contacted for several days.  So I understand how the game works.  But the factor that changes the game is the exclusive buyer representation and the seller being made aware of this, and continuing the process as if  I did not exist.

I'm going to put this out here.  The sale price for the property was $4,200.00.   This is where my issue with the back taxes comes into play.  When my client spoke with the company, they told him that if he signed the contact immediately, the price would drop to $3,000.00.  The back taxes were $3,250.91.  This is what really disturbs me. 

My first question to the current client was to ask if he was working with an agent, which he stated he was not.   If he would have had an actual conversation with this company before seeking my advice to find out more information about the property, does that change the scenario?  Does that mean that I have no business to be involved in the deal?  I don't believe that changes it at all due to the fact that I had the clients best interest in mind and the wholesaler gave misinformation to try and get a quick contract on a property.

I really enjoy reading and discussing the forums on BP, that is why I brought this issue up.  I figured it has probably happened before and will happen again, so why not discuss it. 

I have a new client who found a property here in Memphis, TN that he was interested in maybe purchasing.  The property was on Zillow and was listed for sale by a wholesaler.  Now before you jump to conclusions and think I'm about to bash wholesaling, I'm not.  I think there is a place for wholesaling in the RE business.  The company I work for has many wholesaling connections and has done a lot of deals with wholesaler's.  Wholesalers and agents need each other, because what you find on "Zillow" may not always be correct.

I have several issues I would like to address.

First,  I reached out to the company yesterday, and heard nothing back.  The company get's in touch with client today.  My client clearly states that he has signed an exclusive buyers agreement with me and gives them my name.  Without hesitation they ask him to sign a contract and send it back to them.  The first thing that should have been done was for the company to call me.  I understand that all agents don't understand wholesaling and some may frown upon it, but give it shot.  Call the agent tell them about the property and be as transparent as possible without giving up all the details of the negotiation.  A great partnership may just happen.

Second, the company states to my client that there are no back taxes on the property, which there clearly are back taxes.  I had already discussed this with the client.  Over $3,200 worth of back taxes.  Memphis and Shelby County tax records are online, easily accessible to everyone on the planet.  Or do it the old fashion way and pick up the telephone.  The company explains that the local title company said there were no back taxes, obviously not a true statement.

My client did not sign the contract and immediately called me.  I advised him not to sign the contract and I would call again.  I called and spoke with a gentleman who told me also, there were no back taxes, and explained the title company said there were no taxes.  I told him he might need to check again.  The company has more properties in Memphis that are being sent to me to view.

If your in the RE business, in any role, as an agent, wholesaler, investor, please do your due diligence on your deals.  When you give false or misleading information it makes people lose trust.

@Vuth Tram

This site is full of knowledge about the RE business as a whole.  You will learn things in here that they do not teach in the classroom.  Memphis is a great market to be involved in.  If you have any questions please feel free to ask.  And again, welcome.

This property has some details that have changed.  The tenant just notified that she is moving out November 1st.

They way overpaid. 

@Account Closed  Absolutely I wonder about their role in the deal.  Most of the 9 properties are performing fine, but finding a buyer at the price we have them listed for is difficult.  I have been brutally honest with the sellers and they are aware that the homes might sit on the market for at least a year, if not more.   

The properties are listed too high because if we sell the properties for what they are really worth, they will lose money.  One of the expectations it seems each of the investors has in common, is that when they bought the property, they were all led to believe by the TK company that the property could be sold at anytime at close to the original purchase price.  Now, you and I both know this is a bad expectation, but they trusted the sellers.

*Note:  To any new investor out there, real estate has potential to lose value and be worth less than what you bought it at.  This is a risk you take.

I understand that TK is a buy and hold product, but to sell an investment property to any investor at a retail price, just blows my mind.  It also blows my mind that an investor, who might not have funds saved for an emergency, would make such a purchase. 

I want to keep buyers and sellers as long term clients, whereas I give them good real estate advice, so they can keep buying and making money for years to come.  It seems me as if some TK providers strategy is a one or two and done kind of model per investor.

*Note:  Patience is quality all beginning investors need to have to find the right deal so that what I have stated above does not happen to them.

I currently have 9 listings that have been transferred from TK providers that investors are trying to sell.  When I first speak with the investors and send them a market analysis of the area and they see that what sales are in the area going back at least 2 years, they are amazed. 

The listings are not getting any action due to the sales prices being $10,000+ above current market sales.  I would not advise any client to pay above appraisal.