My 1st Rehab Questions???

Question

Hello BP,

I am working on securing my first rehab. I will be purchasing from a wholesaler, who wants to use their title company. I use that particular title company before with no issues, but as a realtor, I created a relationship with another title company who is offering me discounts on all my rehabs. The wholesaler stated that the title work had already been started and I have to use their title company or buy them out. As a realtor, my buyers have the option to use whatever title company they choose. Is it customary that I have to use their title company?

Should I have the inspection done before the I begin the rehab or wait until it is finished to have the inspector come?

Shalante Davis · Answer

@Cody Evans the good thing is I am a realtor, so the numbers look good. The wholesaler is an agent at my former brokerage where we were all taught the same strategies of wholesaling. I asked for the assignment contract so I can see what is specified.

Cody Evans · Answer

I am a newb and I am not sure what your experience is in the real estate investing world so take it with a grain of salt. I would think a possible reason the wholesaler wants to use their title CO is because some title COs dont work with wholesalers. I am unsure about the inspection but my guess would be do your own inspection using this https://www.biggerpockets.com/renewsblog/diy-home-...

and after you are done have an inspector come through after rehab so you can try and save money by not doubling down on inspections. Again get advice from someone else but just an idea.

Another issue is using a wholesaler. How do you know he is reliable and did you run your own numbers on the property? All I ever hear when I make a post about how I want to be a wholesaler is that wholesalers in general, are terrible. Be careful to not get burned by someone that doesn't actually have a good deal.