In this industry, less is more. “A wise person uses few words.” Just because I know something does not mean that I should share it. Let me be clear: I’m not talking about the fiduciary duties of a real estate agent. I’m talking about as an individual dealing with sellers.

 

Ex: I know a home I’m wholesaling will need a new roof, and my contractor can do it for $5,000. That’s great for me to know. I shouldn’t tell prospective buyers that, though, and here’s why: when their contractor gives them a quote that’s $8,000, he makes me a liar. My integrity is too valuable to place in another man’s hands.

At the same time as a wholesaler, you don’t need to count the screws. Just have a rough idea of what needs to be done.

So what did this wholesaler do?

He sends me an address and this:

2bd 1 bth 900 sq ft.. Asking 25k.. Arv around 60-75

Here are some comps for the property.

So I send him this^ and I ask him where he’s getting the Arv? Most houses selling for 25k are significantly larger. (Also this is an area I don’t typically deal with for… safety reasons.)

His response: “So I figure I let it go kinda cheap.. And between me and you, there’s a huge basement I was gonna put a bd and bath down there and make it 3bd 2 bth .. Nice size room and bath.. It could hit close to 100k arv. All brick. And its one of the biggest house on the block..”

 

This folks is how people get SCREWED. If I was new/out of town and took this guys advice I would be trying to get well over double what this home would ever be worth. Not to mention sinking a TON of money into an area/home that won’t give it back.

This guys reputation is now (at best) that of an inexperienced novice or (at worst) a scammer.

I get emails, calls, and texts from people all the time wanting to know how to get their money out of properties just like this. The most important piece of advice I can give you is do your due diligence and verify everything. In real estate, you have to complete your own market research.

If you find yourself in a hole… Stop digging. Using few words can save your reputation.