Jason Loucks 7 day Sale

[Ivan Jouikov]

So this guy advertises his "7 day sale" system; you can listen to 1.5 hour audio here:

http://7daysaleguy.com/replay.html

The idea is simple:
1) Get a quality property under contract. Explain your intentions to the seller and tell them you'll get them their asking price.
2) Get it to cleanest sell-able condition with minimalistic staging
3) Put out an ad that next Saturday and Sunday there will be open house with open auction and the place will be sold to the highest bidder on Sunday evening. "The bidding starts at <60% FMV>"
4) After you get some bids on Sunday and the open house is over, you start going through the bidder list and calling everyone bu the highest bidder offering them to outbid the highest bidder.
5) You repeat step #4 until you bid up the price as high as you can.
6) Meet with highest bidder and take a non-refundable deposit (specify this as a "condition" of the bid auction).
7) Close.

The idea here is if the highest bidder flakes out, you still have a list of other bidders, everyone just $500 or so lower than the highest bidder.

Also, if the highest bid doesn't match your minimal price to make a profit - well, you're under no obligation to "sell to the highest bidder" (even though that's what your ad promises? bait and switch?), so you can just walk away from the whole thing.

Things that can help - get comps in advance and have them available at the open house, as well as pre-sale inspection report.

Additional streams of income:
1) Have mortgage broker present at open house (and charge them "$5000"%) to pre-approve those who want it (but don't make that a requirement to bid).
2) Sell the bidder list to other investors

I have not seen any such ads in my area and I'm wondering if it's because this system is not effective or is it because nobody is utilizing it?

Any thoughts?