I’ve been a member for quite a while, but I don’t often post. I do have a question that some of you might know the answer to though.
Since I’ve been a member here I’ve gotten weekly emails from John Skaggs, a wholeseller in Memphis, Tennessee. He regularly lists the properties he’s trying to sell and many times the properties are rehabbed and already have tenants. A lot of times he has pre rehab and post rehab videos on youtube available for viewing. According to his emails, if you want a manager for your properties, he’s available for that, if you want to rehab a property, he’ll get that done, on top of that a lot of these properties are very good deals that fall pretty close to the 50/50 rule in price post rehab with tenants.
So my question is, is he legitimate? I’m not saying he isn’t, but it doesn’t make enough sense for me to wrap my brain around for someone to wholesale a property at a 50/50 type price after they already rehabbed and rented the property out. I’d understand if he was an owner that just wanted to get out from underneath these properties, but according to his ads he’s willing to continue being the property manager after he rehabbed it, rented it, and then sold it to you. Why not just own the property himself since he’s already done everything to it and will continue to do everything for it even after you own it. The only difference I can see would be that after you own it, he’ll just be making less money off the property than before he sold it to you.