Do Wholesalers need to know/estimate repair costs?
First off, I did search forums and these are the two answers I got :
"My best advice and the safest advice for you, don't estimate rehab costs for them. There are too many factors outside of your control that contribute to rehab costs. As the wholesaler, your job is to find a great property and leave a lot of profit on the table so that you can move onto your next deal and they can rehab and retail.
Now, if you have an inspection report you want to disclose that to the buyer and let them make the decision from there. Your job as the wholesaler is to buy at the right price and sell at the right price.
"Instead of focusing on costs when speaking to the end-buyer investor, I recommend that a wholesaler talk to the things that need to be repaired/renovated and let the investor decide what the costs will be."
However, I was reading an article from an investor than he said this:
""My best advice and the safest advice for you, don't estimate rehab costs for them. There are too many factors outside of your control that contribute to rehab costs. As the wholesaler, your job is to find a great property and leave a lot of profit on the table so that you can move onto your next deal and they can rehab and retail.
Now, if you have an inspection report you want to disclose that to the buyer and let them make the decision from there. Your job as the wholesaler is to buy at the right price and sell at the right price.
"Instead of focusing on costs when speaking to the end-buyer investor, I recommend that a wholesaler talk to the things that need to be repaired/renovated and let the investor decide what the costs will be."
So which is it, do you just need to be able to list to the investor area's of the property that needs repair, OR do you need to know the ACTUAL repair cost as a wholesaler?