Structure an offer to a Wholesaler (I am the Investor)

Structure an offer to a Wholesaler (I am the Investor)

Houston, TX · Member since 2012 · 8 posts · 3 votes

The place for the best advice (I hope).  

I came across what appears to be a fairly good property, but I am not sure about the repair costs as the Wholesaler said he does not live in town and thus cannot do a site walk without an offer.  I have never made an offer on a wholesale deal before.  Should I expect to get an option period for a few days for inspections and/or a home tour?  I am not going to make an offer with-OUT an out clause if I have not checked the home myself.  Or I could make it for what I believe is lot value, in which case, who cares what the repairs are (other than the fact I plan to do basic repairs for rental usage until the property appreciates for new build).  

I am also struggling with valuation as it is a bit of a unique property.  Double lot, with two houses (but only one address, not sure if I will have time to identify whether or not it can be subdivided, but based on my knowledge of the area, 90% sure it can), so not many true comps.  

Anyway, primarily want advice on what kind of contract/offer to make, contingencies, etc.  And would the expectation be for us to be in escrow before I can even see the home?  If so, what would you expect escrow percent to be?  (price will be $120-180k).


Thanks in advance for the advice!

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  • Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
    7y

    I get access to houses before making offers to wholesalers, because the ones I've dealt with will not accept an option period - the EMD is nonrefundable, with the only exception being clean title.

    You should be able to get access to the home before making an offer. The wholesaler doesn't need to be there, just you or your contractor/boots on the ground.

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