All Forum Posts by: Jared DeValk

Not necessarily. I have found quite a few opportunities near there, just not on the MLS. be sure that you're working with someone that aligns with your investment strategy and your goals.

It's the truth. I guess it's not relevant, just like you pointing it out has nothing to do with this discussion.

Amen Chris! Most Realtor who wholesale do not realize the fact that they walk a fine line when they do not disclose. They could be sued and lose their license if an elderly woman discovered the spreads that the agent made on a deal like you spoke of. It's the same reason why we have the FDCPRA, Usury Laws and consumer protection laws.

I understand and believe in the value of wholesalers and the quick sale. However, if you agree to wholesale a property and then you do not secure a buyer because you're trying to sell a property way over priced (100% over in this situation), the property will take too long to sell which will eliminate the value of the quick sale (because it won't be one at that point) which means she would've been better off listing with an agent at that point. No value is given if the property sits, hence the "getting ripped off". The sad thing is that this guy is an agent and "has been doing this since 1986".

I agree Ned, even Jerks that do the work deserve to be paid. Just thought that the homeowner should know what's going on.

I don't necessarily want to bypass him. I want wholesalers to get paid, but what I don't want is for an elderly black woman to be ripped off especially when this guy is a licensed agent. I'll pay him for bringing the deal, I just don't want to deal with his BS anymore and want the owner to understand what we are going through.

I have some investors that I'm good friends with that asked me to find deals for their rehabbing. I know them well and they have just been approved for an unlimited total line of credit for rehabs, but a per deal purchase limit of $150,000.

Regardless, I had a wholesaler send me a deal that I had never worked with before. They said that the property is available (including their fee) for $66K and it needs $20K of rehab (HA!). ARV is going to be $119,000 minimum so it looked pretty attractive for my investors. Carpet has been ripped out and the place was cleaned out from a hoarder that rented there previously.

We take a look at the property and the first thing we see is a condemned sign on the front. Cracks in Stucco all over the house. It's a 3/2 1250sqft that still has the carpet in it. All that being said, it needs close to $50K-$60K for the rehab which puts us in the neighborhood of $30,000. We call the city inspector up for the condemnation (truly a nice guy) and we mention the property to him. He said that he talked to a man not that long ago claiming to have a contract and earnest money for the property. He was very rude to the inspector and he told the guy that the owner would need to show up to the property with ID in hand in order for him to lift the condemnation.

I contacted the wholesaler and relayed my findings and he began to get snappy with me. He tried to tell me that homes were going for $139K-$149K, to which I said, "I'm a Realtor as well, and I obviously was not looking at the same comps that you are," (I looked at all the comps for the neighborhood, that price wasn't there). He then began to tell me that we were just a backup anyways and that they were already working a contract for the property (Ok, now I'm pissed). I gave him the offer and said that's where we're at, call me if you want to do a deal.

We understand that wholesalers need to make money, but I have a feeling that he is trying to rip the homeowner off. What are your thoughts on bypassing the wholesaler and going straight to the owner? BTW, he's not on BP, so he must be unscrupulous!

Welcome! Are you actively pursuing your next deal, if so, where is your focus? @Lindsay M.

You are correct. I have had sellers back out after a contract has been signed and some of the properties have had more issues than I expected that made it unmarketable at the prices that we needed (owner financing wasn't on the table as well).

Yes, that's why I'm trying to get some ratios from experienced wholesalers so that I can see where I need to improve my business.