Why don't wholesalers do simple rehabs for bigger profits?

[Chad Griffin]

I found a company somewhat local to me that has a property listed for $175k, they are estimating $30k in rehab for a total project cost of $211k including closing. The only comp was sold a few weeks ago for $410k. It sounds too good to be true and I can't wrap my head around some one not doing those repairs for that potential profit. My wife and I are looking for our first investment, and this SEEMS perfect... Any thoughts?

[Account Closed]

Originally posted by @Chad Griffin:

I found a company somewhat local to me that has a property listed for $175k, they are estimating $30k in rehab for a total project cost of $211k including closing. The only comp was sold a few weeks ago for $410k. It sounds too good to be true and I can't wrap my head around some one not doing those repairs for that potential profit. My wife and I are looking for our first investment, and this SEEMS perfect... Any thoughts?

 In the Alaska Gold Rush people made more money selling the tools and supplies to the Gold Rushers than the Gold Rushers made looking for Gold. Sometimes supplying the market is simply far more profitable.