be aware of fake cash buyers

be aware of fake cash buyers

Tampa, FL · Member since 2015 · 111 posts · 8 votes

Hi all, I am advertising a rental property, so two "cashbuyers" call me under the pretense that they would purchase my property. They went out to see it and fell in love with the property. They even submitted a contract to close, but did not want to sign the initial contract I had on the property as the wholesaler. Instead they sent me a contract that was strictly between them and the original seller, stating they would pay me my fee at closing. Mind you my name was nowhere on their contract. At this point it was clear they were trying to steal the property from me and cut me out of the deal. My partner and I refused to signed their contract by this point they notice we were catching on so they agreed to sign our contract but wanted a 14 days due diligence, why? "because they wanted to make sure everything was ok" lies, lies lies, they wanted the 14 days so that it would give them time to advertise and get a new buyer and they would wholesale it. Now we later caught on and simply said we can double close, they still insisted on prolonging the contract because they would be out of town, stories just weren't making sense, it's a team of two, and they lie. So all in all, I told them they would not get the 14days and would only get 3-4 days max to close. By this point they wanted to have me hold on to the property until their cash buyer came back from out of town. I cancelled the deal! Wholesalers need to identify themselves as wholesale not pretend to be a cash buyer!!!! wasting peoples time!!!

3Reply
25 views

4 Replies

Jump to latestLatest
  • Involved In Real Estate · Rancho Cucamonga, CA · Member since 2012 · 22 posts · 5 votes
    11y

    @Danick St Jean

    You're right... but sounds like you did a good job of calling there bluff. You have to stick to your guns. They had "Red Flags" posted all over them. You did the right thing.

  • Rental Property Investor · Stafford, TX · Member since 2013 · 28 posts · 1 vote
    11y
    Originally posted by @Danick St Jean:

    Hi all, I am advertising a rental property, so two "cashbuyers" call me under the pretense that they would purchase my property. They went out to see it and fell in love with the property. They even submitted a contract to close, but did not want to sign the initial contract I had on the property as the wholesaler. Instead they sent me a contract that was strictly between them and the original seller, stating they would pay me my fee at closing. Mind you my name was nowhere on their contract. At this point it was clear they were trying to steal the property from me and cut me out of the deal. My partner and I refused to signed their contract by this point they notice we were catching on so they agreed to sign our contract but wanted a 14 days due diligence, why? "because they wanted to make sure everything was ok" lies, lies lies, they wanted the 14 days so that it would give them time to advertise and get a new buyer and they would wholesale it. Now we later caught on and simply said we can double close, they still insisted on prolonging the contract because they would be out of town, stories just weren't making sense, it's a team of two, and they lie. So all in all, I told them they would not get the 14days and would only get 3-4 days max to close. By this point they wanted to have me hold on to the property until their cash buyer came back from out of town. I cancelled the deal! Wholesalers need to identify themselves as wholesale not pretend to be a cash buyer!!!! wasting peoples time!!!

     Thanks for sharing this. As a newbie in RE, this kind of story make me aware of what's tricks scammers use out there.

  • Investor · MD · Member since 2015 · 208 posts · 32 votes
    11y

    @Danick St Jean

     Great job! That actually happened to me when I was advertising for "cash investors" wanted because I'm searching for partners. I had a few wholesalers call me & tell me they were looking for "anything". I came straight out and asked them if they were wholesalers and I'd say 2 of the 5 tried to give me a song & dance but Kudos to the other 3 that admitted they were only trying to help. I don't have time for semantics.. mean what you say and say what you mean. That's what I'm all about.

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    Not a great surprise.  Most wholesalers represent themselves as cash buyers to the owners, so why not to other wholesalers?

Join the conversationCreate a free account to reply, vote on answers and follow this thread.