How do you investors prefer your wholesale deals

5 Replies

Welcome, 

Little bit about me, I have been inspecting properties for 3 years, I am BPI Energy Auditor certified, Internachi Building inspector certified, Leased residential homes for 2 years with Renters Warehouse, held a real estate license for 3 years, did 3 years of residential HVAC work, hold a residential HVAC diploma and EPA certifications. 

Building a new business system for wholesaling properties. 

This is what I am putting in my flow chart, as an investor do you find value in the following. 

1.  Lead Generation: Obviously the focus on getting houses under contract

2. Running good comps once I get an interested client

3. Getting property under a good contract

4. Doing a mild inspection with pictures- My inspection would consist of identifying appliances, capital expenses, and overall condition such as moisture or structural issues, This will include a lot of pictures approx 100-150

5. finding an investor to flip the property to. 

My plan is to hand a report to an interested investor in the following. 

1st the contract for price

2nd the comps on the property

3rd Report with pictures

Would this be a good packet for proposing a property, or should I just focus on the contract and comps, I feel like I can provide a lot more information that can be valuable with a report. 

My strengths come in inspecting properties, working with contractors, and generating contracts

Thank You 

@Jason Foy

Something helpful you could provide is an estimated repair cost or even a couple bids from contractors. (offer to pay your contractors something for their time)

Make sure your contract is good to avoid any potential liability since you are an inspector and handing them an inspection report. You're not exactly a neutral third party. Might want to run that issue by an attorney.

@Jason Foy Even-though you may be an expert at inspection, it is different when you give an opinion on repair cost. I normally leave that out and inform the buyer if it is a light, medium or heavy rehab. This way, you are not over estimating the rehab and possibly knocking your price down. Just inform your buyer of what you think the property is worth and the amount you are selling it for. You can show you buyer pictures or take them to do a physical walk-through of the property. 

Now when working with the seller, as a negotiation tactic I give them an estimated amount of what the rehab cost would be but this is so I can get a better price on the property. But you don't want to use it as it benefit on one side then have it hurt you on the other. 

Hope that helps

Hey Jason,

I haven't done any deals myself but as an aspiring investor, although I would like as much information as you can give me, you should consider what your time is worth as well.  Based on all the information you're giving, investors will get the benefit of your hard work, but you may find yourself in a position where you are over-worked and underpaid.  The report may be overkill for some people but enticing to others.  Just my two cents.

I don't know much about the Minnesota market but I'd be open to having you send me some deals.  With all the information you're giving, I'd be really inclined to see if there are any opportunities for me to invest in your area.

Best Regards,

Charles

Originally posted by @Geordy Rostad :

@Jason Foy

Something helpful you could provide is an estimated repair cost or even a couple bids from contractors. (offer to pay your contractors something for their time)

Make sure your contract is good to avoid any potential liability since you are an inspector and handing them an inspection report. You're not exactly a neutral third party. Might want to run that issue by an attorney.

Good point I can see how any inspection report could be litigious and a lawyer should be sought out for an opinion on how to disclose it properly. Thank you for your insight

Originally posted by @Louis Davis :

@Jason Foy Even-though you may be an expert at inspection, it is different when you give an opinion on repair cost. I normally leave that out and inform the buyer if it is a light, medium or heavy rehab. This way, you are not over estimating the rehab and possibly knocking your price down. Just inform your buyer of what you think the property is worth and the amount you are selling it for. You can show you buyer pictures or take them to do a physical walk-through of the property. 

Now when working with the seller, as a negotiation tactic I give them an estimated amount of what the rehab cost would be but this is so I can get a better price on the property. But you don't want to use it as it benefit on one side then have it hurt you on the other. 

Hope that helps

 Thank you, this makes a lot of sense, This will help a lot with the homeowners.