Fellow RE investors,
Hi, I am Sang Han and a new REI in Chicago area. And I am sure that my number of questions would look so naive and stupid including below.
Can you please advise a list of things I need to check in legal when I purchase wholesale property?
I can find information about "how to be a wholesaler" but cannot find information about "what are things to check or be careful when I buy a wholesale property".
Thank you very much.
First, make sure you run your own numbers in regards to ARV vs purchase price. Don't take the wholesalers word for it.
Second, make sure you run your own construction people through the property so you have a realistic number for repairs. Again, don't take the wholesalers word for it.
Third, get a copy of the contract between the seller and wholesaler. You should know exactly what you're agreeing to when they ask you to sign their one page assignment contract.
Fourth, Most deposits to wholesalers are non refundable so make sure all of your questions are answered before handing over a check, preferably over email so it's documented.
Fifth, Do not stop your diligence until you close. Don't be scared to lose your earnest money if the numbers stop making sense. Know when to cut your losses.
Thank you very much for your great information. It is really helpful.
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