So you think you're a wholesaler?
I had to post about this experience because I'm half confused and half mad!
I had been bidding and watching a HUD property for a few months, waiting for the right price. Finally it had been lowered to where I needed it to be. After a few days of bidding, another bidder got it. OK, no big deal.
I'm cruising Craigslist a few days later, and there's the house! Someone is trying to sell it!
HUD's list price was $49,000. Assuming he's under agreement for ~$40,000, his all-in will be $42,000 give or take.
I emailed him and asked what his price was, and that I had been bidding on it. I figure if he's trying to tack a few thousand on it and turn it, it might be worth it. His asking price... $64,900!!! So it was on the MLS for $49,000 3 days ago (and actually still shows as active), you don't even own it, and you're trying to make $20K+? Who's going to go for this? At his asking price the numbers don't really work as the ARV is $95K. Is he trying to get a retail buyer paying cash since the house isn't able to be financed as-is? I told him I wasn't interested at $64,900 and I'm not sure what he's trying to accomplish trying to make a $20K margin. He told me that it was a HUD house and not everyone could bid, which I'm not sure if he thinks I'm stupid or he doesn't understand, but that's obviously not true. I told him the numbers don't make sense for an investor and the odds of a cash retail buyer coming along are slim, but best of luck. He asked if I would like to be added to his buyer's list but I politely passed telling him I need REAL deals!
What is this guy trying to accomplish? Is he new and thinks this is a viable strategy? I certainly don't think it's a viable strategy. Do you think he has this deal tied up for $500 and doesn't even have the money to close it? I'm hoping it becomes available again, but we'll see.
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All due respect to the OP, this has more to do with the State of BP than his plight.... (and @mark Gallagher I do feel your pain)
But when I see posts like this these days, only one question comes to mind.......
Should I just grab my popcorn and wait for all the usual suspects to turn this into a real ranting wholesaler bash, or just start ignoring my "wholesaling" keyword alerts......because this has gotten so boring.