Why are investors are purchasing TLC properties over value

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I'm going to be honest. This Real Estate market is trash, especially in New Jersey. The reason is because gurus are making newbies come into the business, and now markets are saturated with investors. Newbies are bidding up properties in desperation to buy their first investment property. Anyhow, that's not why I made this post. 

The other day I was on Hubzu looking at a couple Multi-Fam properties in Essex county, NJ. These are areas that are run down, gang infested, and drug empires. The ARV on these properties are around $350k; and please be reminded that these properties have stolen pipes, hot water heaters, boiler system, and etc; ultimately, they need a lot of work. However, Investors are bidding these properties up at market value, which makes no sense!!!! For example, if the house is worth $340k, these guys are coming and bidding $330k. I have no idea if it's the guys at Hubzu doing this in hopes to get more money, or if investors are really doing this ridiculous bidding. Also, because of these inflated prices. Investors are buying properties above market value, and listing them ABOVE market value. Which again, makes no sense. It has to be out of desperation that investors are doing this.

Also, properties are hitting the market and in less than 9 hours they are already under contract. These realtors are giving these properties to their investor buddies, and is making unfair competition for other investors. It's a lot of shady things happening behind the scenes in this business, and it's ridiculous. From the Fraudulent coaching "guru" programs, all the way up to these REO listing agents. I've been involved in this business since late 2016, early 2017, and I've never seen this much competition, especially in New Jersey.