New Western - Stay Away

[Thomas Shiver]

Wholesaler lied to me about several items about a condo in Lithonia, GA:

1) ARV: She gave an ARV of $125k based on a comp that sold two weeks prior. That building was the only new building in the complex, every other building is dilapidated. The property I bought was already slightly renovated, so it really seemed like a steal.

2) New HOA: She said the HOA was new and active. They had the same HOA for six years and they do nothing. At $220/mo, they're just lining their pockets.

3) Rents: She said I could rent for $1000-1200. However, two hours before closing the HOA called and said it had to be owner-occupied.

4) Active listings: I brought up a few rehabbed properties in the same complex that had 30-70 days on market already. She said those didn't count, and just to focus on the $125k comp.

5) Closing: After learning about the rental situation, I wanted to terminate. The wholesaler said the seller had already signed and would sue NW then me if I didn't close. When I asked what the limit of my damages were, the wholesaler wouldn't respond.

PP: 65k
EMD: 5k
CC: 15k
ARV: ???

I'm not sure what will happen, but my optimism has defnintely been tested. I knew something wasn't right in my gut, should have gone with that. I'm going to do a little rehab and relist it asap.