Are there alot of stupid investors out there ?

[Tzvi Balsam]

A older fellow approached me he would like to sell me the properties he owns he would like to retire. I took a contract on 2 properties so far.

I am not looking to be a "buy and hold investor" as of now because I do not like the management aspect of it. I am only buying to wholesale the deal to another investor, or sell it right away after I close.

Now this is my question are there many investors who will buy a property even if it wont cash flow, or has great numbers, will I be able to get much more money on the open market for it?

Its in North jersey where the market is really hot I would like to hear from other Investors who put properties on the market and had people bidding for it above what it makes sense on paper.

Its a 7 Unit so I understand it will be different then a 1-4 Unit.

[Jacob Pereira]

The answer to your literal question is yes, there are plenty of stupid investors out there; the answer to your implied question is no, your business model is not a sound one. Ignoring the ethical implications of predatory selling to unwary investors and misrepresenting your properties as solid investments, there are also protections in place to prevent people like you from doing this. They don't always work, but after 2008 they work much better than they used to.

One of the first barriers you're going to face is financing. You're selling a 7-unit, which means the buyer will need to get a commercial loan (I'm ignoring the possibility of a cash buyer, since I assume anyone with that much cash probably has some basic business sense), and the lender will look at your numbers and refuse to finance. That's assuming the investor doesn't have a realtor, and while residential realtors often have no idea, your average commercial realtor will see through your plan.

Rather than looking for ways to fleece people, why not look for legitimate value-add opportunities? This website is a testament to how powerful of an investment vehicle real estate can be, and there's no need to ruin people's lives or sell your soul to do it.