A funny thing happened today dealing with a wholesaler

[Michael Jobe]

I've had an interesting Friday to say the least. I'll start from the time I viewed property #1...

After inquiring about a SFH in Durham and doing some back & forth on the phone with the wholesaler's assistant, I was able to gain access to the property. Based on the pictures I was sent, it was obvious that their rehab estimate of $10k was underestimated but I figured it was still worth a look. I was considering this house for a primary residence with the intention to build up lots of sweat equity and then sell it when the time was right. While driving down to the end of the street where I would potentially be living I drove passed two different residences with blatant drug activity going on. I was undeterred however, as this area of the city is currently undergoing gentrification so I figured those guys wouldn't be there too much longer. Pulling up, it was obvious the place looked better in the pictures. I knew it wasn't going to work out. This place had no rhyme or reason to it whatsoever. It was almost as if the contractor built it with no blueprint. I walked through to see the scope of work needed but stopped looking when my rough rehab estimate hit $40k. So I hopped back in my car, waved goodbye to the street pharmacists, and proceeded to property #2 across town that this same wholesaler had sent me.

This is where things got rather interesting.

The assistant tells me on the phone that there is a lockbox on the front door and gives me the code so I can get inside. As I drive through I'm already loving the neighborhood and this house is the ugliest one on a block full of well kept homes. After walking through the front door all I see is the massive potential of this once beautiful home. Then, I look to my left and notice an alarm system panel flashing with the display reading "Enter Pin" and I think to myself there's no way this place has an active alarm system. No sooner than I looked at it the damn thing starts going off! I step back out onto the front porch and close the door then call the assistant. She says that there is no alarm system on the house so I stepped back in to let her hear the siren blaring. She goes into panic mode telling me she'll call me right back and hangs up the phone. I assume that they'll have it handled long before the cops show up. Nope! Within ten minutes two officers come walking up the driveway ready to subdue a would-be burglar. I was in the back checking out the yard and back deck so when I come walking around to the front (in gym clothes, no less) these cops are ready to slap cuffs on me. I calmly explain to them that I'm a real estate investor and that the wholesaler didn't know the PIN for the alarm system. They both look perplexed and want to know why there's no sign in the front yard if it's for sale, why I'm in the backyard, and why my car has Florida tags if I'm an investor in North Carolina. After giving them my ID and proving that I have access to the lockbox and door key they ease their suspicions. When dispatcg comes back across the walkie talkie telling them that I have no warrants etc. they return my ID and then proceed to tell me that the place isn't worth what they're asking and go about their day. The wholesaler calls me as they pull off apologizing and promising to make up for the inconvenience. I tell him it's no biggie and that I'll reschedule a time to look at the place. I'm thinking a steep discount is in order & I fully intend to give him a hard time if I see him at the next TREIA meeting!

Have a great weekend and thanks for reading!