All Forum Posts by: Samantha B.

Originally posted by @Bill F.:

Out of curiosity, where does the wholesaler want you to send the EM? To him, an escrow company?

He did not say where to send the EM. It seemed too weird to me, so I decided to move on. Thanks for your insight!

Originally posted by @Jim K.:

Bill's point is the most important here. Who does he want you to make out the check to? I've never paid earnest money without inspecting a property myself. But then again, I tend to stick to agents and not wholesalers to buy my houses.

But knowing where he wants the check to go to might help you decide if he's just a completely clueless newbie or actively trying to pull a scam. He might very well have a place and is terrified of you going behind his back because he doesn't trust you or the seller.

I do not know who he wanted the check made out to. I decided not to ask and to move on to something less sketchy. I did look up his LLC, and it is registered as a nonprofit. It seemed too weird to be a nonprofit wholesaler. Thanks for sharing your knowledge!

Thanks everyone for helping this newbie navigate past a likely scam!

Is it normal for a wholesaler to ask for an EMD before sharing a property address?

All the information I got from the wholesaler about the properties was:    3/1, 756 sqft, fully renovated, full finished basement, management in place, tenanted with rent at $750/mo; Asking $51k. 

He would not share the address. After much back and forth, I finally got a zip code. For Detroit, a zip code is just not enough information for me. Every block is different. Am I missing something? How is it possible to analyze a deal without the address? How can you justify potentially losing your EMD for something completely unknown?

Any thoughts if this practice is normal? 

@Arsen Atanasovski - Could you explain how a "war zone = cash flow" for you in Detroit? Is it because there is less competition and lower prices? How is it possible to outweigh the challenges that come with the types of tenants who live in war zones?

Cynthia, 

Thank you sharing your raw, uncensored experience with tenants in the Detroit rental arena. I am truly sorry they are giving you such trouble! As a newbie, I really appreciate your realistic representation of possible outcomes with rental properties in a transitioning area.

Best of luck waiting it out or running, whichever you chose!

@Taylor Johnson - Does the Detroit Home Mortgage program require that the owner occupy the home? Do you know what the time requirements are? Were you able to qualify while living in Tulsa?

 Thanks!