Approaching first flip- Trust the Wholesalers?
My business partners and I are looking to do our first flip and are in the market for a SFH in the Houston area. Two of the 3 of us have been learning extensively on BP and are truly thankful of everything we have absorbed to date. My question is regarding a near scare that we just experienced with using a wholesaler.
We were close to pulling the trigger on a suuposed $275k ARV, with a purchase price of $199K. We called in our realtor (who has 10 years experience, and a few deals under his belt with investors) who did the comps and he advised us the full retail price of the home would be about $200K given that similar houses were selling for $190k-$200k. The realtor also advised us of a client of his that is invovled in a lawsuit against a wholesaler for exaggerating an ARV.
Obsiously for rookies, this poses a serious concern and brings about the question: HOW DO WE DETERMINE IF A WHOLESALER IS CREDIBLE? Any BP family members feel like suggesting any Houston wholesalers that you've had success with?!
Thanks to all in advance!