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