The Jig is Up

[Jake Kucheck]

Ok- so here is a real life example of why wholesalers are, in my opinion, guilty until proven innocent.

I constantly get emails from a guy who from time to time has what sound like very good real estate deals. This particular one could be purchased at $365K and had an ARV of $550K, with about $60K in repairs. Those of you in So-Cal probably already know what property I'm talking about.

What DOESN'T make sense is the following:

1) I clued one of my fix & flip guys into it and he says "yeah, my friend has it under contract and I'm contracted to do the rehab".

2) It is listed in the MLS for well above the $365K, and appears to be in escrow.

3) I mentioned the anecdote in #1 to another investor, and he immediately recognizes the deal, and knows that the buyer didn't perform.

What???

Can one of you wholsesaling experts tell me just what is going on, who actually "controls" this deal and how ANYONE is actually getting paid?

Thanks in advance.