Get it right, people!

[Jim Viens]

This is neither a question, nor is it really an answer. But, rather, a rant that's been repeated here before. I'm just wanting to add my 2-cents. Got a lead on my website for a house in the area. Called the guy and he was given this house by his dad when he got married. House is free and clear. He and his wife had bought a new house and moved there with their little girl and he needed to get rid of this one. He even had a pretty accurate view of the ARV (about $58,000) and what the house may be worth (asking about $20k). He was up-front about needing roof and foundation work as well as a new kitchen. Went to look through the house and found that the foundation was settling in the center of the house (it's on a crawlspace. I didn't investigate up-close). Roof also was pretty wavy and showed signs it may need all new decking. Needed the aforementioned kitchen as well as a bath and new flooring & paint. Exterior looked pretty good other than the roof and windows were in good shape. Mechanicals were fairly new. I offered him $12,500 and he said he had an offer of around $20,000 so I mentioned I may be able to come up to $15,000 but it would depend on what a contractor had to say about the roof and foundation.

Fast-forward to today. I'm on a Facebook group for wholesalers and one of the members has a link to his website with a list of properties he has available. Lo and behold! There's the house I looked through! He has it listed for $38,500 with the headline of "This is a Livable Home that needs cosmetics to make it move in ready." I don't know what this guy is thinking but he made absolutely NO disclosure anywhere in his listing about the foundation or roof issues. I actually messaged him directly on FB to kindly point out to him that failing to disclose these major issues will damage not only his credibility but wholesalers in general. I also pointed out that in wholesaling in particular integrity is everything and suggested he amend his listing to reflect the known defects in the property and possibly lower his price to reflect that. I figure he's the one that got it under contract for $20k so he has plenty of wiggle room there.

Once I addressed the huckster I immediately texted the owner to let him know that I understand he may have the property contracted already but that my offer stands as a back-up if anything should keep the contract buyer from closing. Perhaps this will be a salvageable deal in the end but only time will tell.

Lesson to the masses: DISCLOSE ALL KNOWN DEFECTS TO POTENTIAL BUYERS IF YOU ARE WHOLESALING A PROPERTY UNDER CONTRACT!! You may attract more buyers without listing the defects but every one of them is going to go to that property thinking it "only needs cosmetics", see the major issues and never answer another one of your calls. If you're honest about the big issues on the property you may draw fewer potential buyers, but they will respect you for being honest and up-front and will be much more likely to look at other deals you send them in the future. 

Be honest. It's the right thing and only makes sense if you want to grow your business.

End rant.