In the last 3 weeks, I have literally saved myself a lot of headache/bad investments with this one step. This tip is particularly for out of state investors. The typical scenario has been (atleast 7 properties).
Wholesaler: Awesome property @ 65 cents on the dollar, all the numbers look great, CMAs are great, pictures are awesome. You are ready to make an offer...wait, before you do it, please consider this important step.
I call the top ranked listing broker in that Zip code and request him/her to do a walkthrough of the property with a contractor. In the last 3 weeks, I had to say no to 7 properties which I would have signed for without this step.
A lot of investors get inspection period but as the market is heating up and competition is high and if you do want your offer accepted. I would still strongly suggest to do a listing broker walk through, if you are flipping the property.
A 3 rd party listing broker will give their unbiased opinion on how much the property would sell. Five of the seven cases the listing broker's estimate was 20-30k less than what the wholesaler had claimed or even the comps have shown.
I am sure other experienced investors have some great input on this.
Just wanted to share my experience.
How much did you pay for BPO?
Here, they are usually $75-$150. Usually.
Also, good contractors don't do this free. What did you pay contractor?
The contractors were gracious to do it for free. Although, most were listing broker walkthroughs again at no charge. I m buying one and that listing broker is going to sell the property. I am a serious investor and will definitely work with the broker who is nice enough to take time to do a walkthrough for me.
Always take care of your team :)