What I don't understand about wholesaling REOs

[Jeff NA]

I just finished reading the other thread regarding wholesaling FSBOs or REOs, and I've seen a few discussions here and there over the months on wholesaling REOs. And while this point is always mentioned, I just don't understand how it is plausible to pluck something off the market that is available to anyone with a pulse, pay closing costs, mark it up a few thousand dollars, and sell it off to another investor.

It would seem to me, someone that still has zero experience, that the end investor is a relatively informed buyer. So why are they paying an inflated price? What's the secret here?

Jeff

[Scott M.]

Time is money - not all investors have the time to do the work you just did and are willing to pay for it.

Not all investors have the ability to pick out good homes - if you have that skill maybe worth paying for.

Investors can't see every deal - you might have seen one that the person your selling to just didn't see - lots of property out there.

If the numbers are right - does it matter to an experienced investor if you make money? To me - no - I don't count your $$ and you don't count mine - if the deal works at the price your selling it at - fine by me.

and prob. 100 other reasons :)