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.

[Destiny Rich]

You have to be careful with working with wholesalers in Atlanta, especially if you don't have an agent. They owe you no loyalty so just like any other business venture, its your job to get someone to look at it. If you are still in due diligence you can back out. You should definitely reread whatever contract you sign. If you don't want to buy the house then you can just usually give up your earnest money.