Just wondering if you go and look at each property before you make an offer or if you just look at online, run your numbers and then make an offer?
I look online, run my numbers, and only look at the properties where the initial numbers (and other criteria) make sense. Then when I look at the property it is to basically prove or disprove the initial numbers. This cuts down on how many showings you need to do, and then you’ll be making an offer on 80% of the properties you actually go see.
Every single one
I think it should really depend on your current experience and exit strategy. I know some wholesalers have systems to shoot out low ball offers with boots on the ground and a large buyers list. I know some buy and hold guys at auctions or even MLS will make an offer even without knowing all the specifics at a price that 9 Times out of 10 will work out in their favor.
If you don’t have that experience, or can’t afford that 1 out of 10 chance that you get burned on one poor deal, I would recommend a much more thorough due diligence process by qualifying leads first based on what you can see from pictures or gather from the seller/agent. A quick and dirty rule I’ve heard is $5/square foot on a touch up paint and carpet rehab, $10/sq. Ft. medium rehab and $15-20/sq. ft for a total gut job. Once you’ve qualified a property you’d be interested in, I’d then go see it and bring someone that can better estimate rehab costs and of course your agent to determine ARV, rental estimates etc. So like most questions asked on the forums, it really depends. But keep us updated on how everything goes. Best of luck!
Probably depends on your market. If good deals are selling within a day then I would make offers early and with an inspection contingency. I think most markets however allow time for due diligence. Personally I don’t think I would ever buy a property sight unseen.
thanks for all the info. Personally I don’t think I could ever purchase without seeing in person. I just find myself wanting to see a bunch lately and wondering when I’m going to have time to check all of them out.
Look at it online. Run the numbers. If numbers make sense, I inspect the property myself and put together any rehab costs. Once this is done - I look at the entire deal to decide if it is doable. I rarely do anything with tight margins. Photos online are great, but they reflect what someone else wants you to see, not always what is truly there. Many deals look great until you get in the middle of the rehab, and costs and project length simultaneously rise - kills ROI. I like to drill it all down, then add 15%. That's when I know.