( homeowner education )
protect our neighbors
a neighborhood initiative to spread awareness for unlawful & unfair wholesale real estate practice.
( 01 )
real stories
north phoenix
$415k cash, resold at $512k.
an older homeowner signed on a same-day visit. the contract was assigned twice. the home needed no major repairs and she was never shown a market analysis.
west valley
the contract was cancellable.
a family signed an as-is contract they were told was "just to hold it," then were told they'd lose their deposit. the required written disclosure was never given.
east valley
"$90k in repairs" was really $22k.
two licensed contractors quoted under $22k. the home sold on the open market for $68k more than the cash offer.
( 02 )
how wholesaling works
it's legal, and much of it is honest. the problem is when a seller doesn't know it's happening.
contract
they put your home under contract — cash, as-is, quick close.
assign
they sell their spot in that contract to an investor for a fee.
close
the investor closes at your price. the wholesaler keeps the difference.
their fee is the gap between your price and the buyer's price. sometimes that gap is earned. the only way to know is to see the market number before you sign.
( 03 )
know your rights
general information, not legal advice.
never sign on the spot
no law makes you sign during a visit or a call. take any document to an attorney, title officer, or agent first.
wholesalers must say so in writing
arizona law requires it before you sign. they must state they may assign your contract for a profit and are not your agent (a.r.s. § 44-5101).
no disclosure means you can cancel
before closing, without penalty. ask for the written disclosure and keep a copy.
only a licensed agent represents you
a buyer or investor works for themselves. they owe you none of the duties an agent owes a client.
ask who is actually buying
get the answer in writing. who's on the deed, can the contract be assigned, what's the fee.
a second number costs you nothing
a market analysis is free and not a listing commitment. knowing your value before you accept is your best protection.
( 04 )
red flags
- pressure to sign today, or an offer that "expires" in hours
- no straight answer on who the real buyer is
- "assignment" in the contract and nobody will explain it
- big promises, no numbers, nothing in writing
- paperwork that changes, or blanks you're asked to sign around
- discouraging you from calling an agent, attorney, or family
- no written wholesaler disclosure, even after you ask
- earnest money that's tiny or never deposited with title
( 05 )
get a second opinion
free, no obligation, and i'll tell you straight. we just want to help.
- what your home would bring on the open market
- what the offer actually nets you after costs
- whether the paperwork has the required disclosures
- whether a deal your parent, neighbor, or friend was offered looks right
