Staging in real estate is where a seller does a temporary beautification of a property.  The furnishings are usually rented or supplied by the listing agent with the intent of selling the home more quickly.  The listing agent may do the staging in exchange for a listing agreement.  However, reverse staging is the opposite of this practice and is actually criminal in nature.

I saw reverse staging for the first time probably 15 years ago when I got a call from an investor who offered me a waterfront property in a very nice neighborhood.  When you get these calls the best thing to do is drop what you are doing and go see it as hesitation can result in lost deals.

I met the investor and his partner at the property and the outside looked reasonably good but inside was a different story.  It appeared the property had been vandalized with dry wall knocked out everywhere.  The toilet bowels were smashed and many of the windows were broken.  In addition, the ceiling had brown stains in numerous spots which indicated roof leaks.

As I spoke to the sellers, they explained it was a short sale and they were still working on getting a final price from the lender.  They also admitted that the ceiling stains were from iced tea they sprayed to fake the roof leaks.  The smashed windows, toilet bowls and holes in the drywall were also their doing. change your life mentoring click button j 300x236 1

Actually their drywall destruction did disclose a massive termite infestation that would otherwise have gone unnoticed.  After they told me what they had done, I decided not to do the deal with them.  I felt if they were capable of that level of deceit why should I think I would be immune.

I haven’t seen them in the local real estate scene in many years so they moved on or maybe were caught and incarcerated.  Yes, it is a criminal offense to reverse stage a property and bank fraud as a matter of fact.  This came to light awhile back when an investor confided that he had banged up a property to get a better price and he got caught.

I cannot bring myself, and I hope you don’t, to reverse stage a property for the sake of getting a price reduction.   While the punishment may not fit the crime, you could still have a criminal conviction on your record that would negatively impact your future for many years to come.

To your limitless success,

Dave Dinkel

PS – I am an advocate of having a seller leave all the stuff they don’t want in the property when we buy it.  Especially in probates, the seller’s unwanted items can be a treasure trove for the buyer – in some cases for us it has been nearly worth as much as we paid for the property.  If you are wholesaling a property that is full of junk, it should be worth it to clean it out before you start showing it – this usually adds $5,000 to $10,000 to the sale price.

Visit davedinkel.com for full privacy policy, terms of use, etc.  Be sure to contact us through the website at davedinkel.com if you have questions or concerns ([email protected]).  Results mentioned in this presentation and any video, article, and/or material related to Dave Dinkel and his associated businesses are not typical nor are a guarantee of any earning potential.  No advice is to be construed as legal, accounting, or professional advice EVER.  Please consult related licensed and qualified professionals before taking any action.  No person(s) mentioned in the articles and /or shown on videos received compensation in any form for their opinions.

Staging in real estate is where a seller does a temporary beautification of a property.  The furnishings are usually rented or supplied by the listing agent with the intent of selling the home more quickly.  The listing agent may do the staging in exchange for a listing agreement.  However, reverse staging is the opposite of this practice and is actually criminal in nature.

I saw reverse staging for the first time probably 15 years ago when I got a call from an investor who offered me a waterfront property in a very nice neighborhood.  When you get these calls the best thing to do is drop what you are doing and go see it as hesitation can result in lost deals.

I met the investor and his partner at the property and the outside looked reasonably good but inside was a different story.  It appeared the property had been vandalized with dry wall knocked out everywhere.  The toilet bowels were smashed and many of the windows were broken.  In addition, the ceiling had brown stains in numerous spots which indicated roof leaks.

As I spoke to the sellers, they explained it was a short sale and they were still working on getting a final price from the lender.  They also admitted that the ceiling stains were from iced tea they sprayed to fake the roof leaks.  The smashed windows, toilet bowls and holes in the drywall were also their doing. change your life mentoring click button j 300x236 1

Actually their drywall destruction did disclose a massive termite infestation that would otherwise have gone unnoticed.  After they told me what they had done, I decided not to do the deal with them.  I felt if they were capable of that level of deceit why should I think I would be immune.

I haven’t seen them in the local real estate scene in many years so they moved on or maybe were caught and incarcerated.  Yes, it is a criminal offense to reverse stage a property and bank fraud as a matter of fact.  This came to light awhile back when an investor confided that he had banged up a property to get a better price and he got caught.

I cannot bring myself, and I hope you don’t, to reverse stage a property for the sake of getting a price reduction.   While the punishment may not fit the crime, you could still have a criminal conviction on your record that would negatively impact your future for many years to come.

To your limitless success,

Dave Dinkel

PS – I am an advocate of having a seller leave all the stuff they don’t want in the property when we buy it.  Especially in probates, the seller’s unwanted items can be a treasure trove for the buyer – in some cases for us it has been nearly worth as much as we paid for the property.  If you are wholesaling a property that is full of junk, it should be worth it to clean it out before you start showing it – this usually adds $5,000 to $10,000 to the sale price.

Frequently Asked Questions

1. What Should I Do If a Seller Ghosts Me?

If you feel you have been ghosted, act decisively and quickly. If you have tried texting and calling, it’s time to drive by the seller’s location. I always take the recorded Notice of Interest or Memorandum of Contract to leave, so the seller knows it exists. Go by at a time when you know they will be there and don’t be confrontational, just get the facts.

In our experience with new investors, the chances of losing a deal with no contract is likely over 85%. Verbal commitments do not apply in contract law; get everything in writing, especially contract changes.

Different ‘gurus’ have different opinions, but our experience is finding motivated sellers and then a buyer for your deal. Ideally, you should be finding motivated buyers from day one, so you are ready when you find a seller. Buyers are easier to find as you can see at https://davedinkel.com/products/

Prevention only comes about by thinking a Black Hat wholesaler will be coming after your deal. First, educate the seller that an unscrupulous investor may come by and illegally offer more money, have the seller sign your “Notice to Homeowner,” stating that he understands he cannot accept another offer.

There is nothing illegal about changing their mind, it is called seller remorse and occurs about 25% of the time. However, if they have signed your contract, it can’t be cancelled for any reason unless acceptable to the investor/buyer.

If price is an objection, you need to find out how important it is to sell fast and for cash. If the seller isn’t under a time constraint, has a money issue, or has a personal dilemma, he may not agree to the price you need. Offer to help move and build it into your price before you make your offer. However, never give the seller money; only pay the moving company, and only after closing (escrow with a closing agent). If fear is the seller’s issue, break it down into what the real problem is and answer their objections one at a time.

You can get to the root of motivation for a seller by asking a few questions. First, “Why are you selling?”, “How soon can you close?”, and Are you ready to sign an AGREEMENT today, if not, what do I have to do to make you comfortable?’. The answers to these questions will determine the truth about your seller’s motivations.

The best times to involve your attorney in your deals are to have him review your contracting, review the signed contracts from the seller and end buyer, have him open escrow and start the title work, negotiate with city or counties for lien reductions or mortgage payoffs with lenders, and to close the transactions.” Your attorney is not the adversary; it’s the opposing party’s attorney who is a deal killer, and having your attorney allows him to help overcome this obstacle.

The key to successful prospecting and bringing back deals that didn’t close is to follow up until the property is transferred in the public record. Some of our deals have been where the seller came back to us months and years later because they felt comfortable with us and not the other “pushy” investors who contacted them.

Your contract’s most important clauses are inspection period (as long as possible), when the EMD must be deposited if at all, your ability to access the property, any added clauses specific to the property that will protect you against seller claims later that were verbal only.

Visit davedinkel.com for full privacy policy, terms of use, etc.  Be sure to contact us through the website at davedinkel.com if you have questions or concerns ([email protected]).  Results mentioned in this presentation and any video, article, and/or material related to Dave Dinkel and his associated businesses are not typical nor are a guarantee of any earning potential.  No advice is to be construed as legal, accounting, or professional advice EVER.  Please consult related licensed and qualified professionals before taking any action.  No person(s) mentioned in the articles and /or shown on videos received compensation in any form for their opinions.