Hello investors, I've graduated from buying a few turnkey properties to now looking at doing BRRRRs. My question is this...how are you viewing your properties remotely to make sure there's nothing obvious like foundation issues or roofs caving in? One of the wholesalers doesn't allow any contingencies and it moves way to fast to get an inspection. How are you guys handling this??? thanks in advance!

@Brandon Baker How fast are they moving? Are they actually being sold or are they trying to create a fake sense of urgency? I ask this because I have wholesaled a few deals and I never not allowed some DD time. I even included that in my actual PSA to the seller, so if there was a problem found we could negotiate on the price. Now I am not opposed to have a non refundable earnest deposit down if we never had done a deal together, just to get the tire kickers out the way. 

I have ran into the same thing here in my new market (Saint Louis, MO) and I have told these wholesalers that I am not going to get rushed into a deal, that this is not my first time. If they can not be transparent in the deal, I just keep it moving. 

Stick to your guns and make offers based on numbers that actually work, but when they do work then pull the trigger and do not try and haggle on the price if there is nothing wrong with the property. Because that's how you do not get any more deals sent your way. Trust me, that what I do when a "buyer" wants to low ball me. I just keep it moving to another buyer. 

@Nathan Cross they are often moving within 24 hours, I saw one of the other day in less than two hours. I’ll go back to this particular person and see what can be worked out. I definitely don’t want to make a mistake..

Originally posted by @Brandon Baker :

@Nathan Cross they are often moving within 24 hours, I saw one of the other day in less than two hours. I’ll go back to this particular person and see what can be worked out. I definitely don’t want to make a mistake..

That's what I was trying to ask, was it real assigned? Or is that person creating a false sense of urgency for you to get it under contract? Wanting you or another seller to make a quick decision and possible a bad one. 

@Nathan Cross , The one I saw go in less than 2 hours was another wholesaler in same market, didn’t even give me the opportunity to bid. I assumed it was really assigned.

Originally posted by @Brandon Baker :

@Nathan Cross, The one I saw go in less than 2 hours was another wholesaler in same market, didn’t even give me the opportunity to bid. I assumed it was really assigned.

Interesting. I will say stick to your deal analysis, but see if you can speed it up some but not skip over making sure the deal actually works. I myself am not going to rush it, since I am looking at these buys as a business not a hobby. I hope this helps.  

@Nathan Cross it does, thanks!

@Brandon Baker “moves too fast for inspection” "doesn't allow contingencies"? That’s scarcity marketing/ creating a false sense of urgency/ FOMO sales technique 101. Don’t fall for it. Be careful working with any wholesaler that charges a non-refundable fee before “releasing” information about a property, doesn’t allow you time to even see the property, rushes you or pressures you to skip steps in your due diligence process. Don't get stuck holding the hot potato.  

@Brandon Baker Get the inspection. Trust me. ~Source: Inspector of many Wholesale “deals”

You'd be better off missing out on a few "deals" than getting stuck with a stinkbomb. Just because something sells quickly doesn't necessarily mean it was a good deal, just that the wholesaler's sense of urgency sales tactic worked. 

I've seen the daisy chain emails, "HOT deal will sell quickly!" Then I get that same email every day for the next few weeks. But everyday the deal is HOT HOT HOT, it never cools down to even lukewarm... 

I learned some time ago that I never offer on a property that I cannot put actual eyes upon.

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@Brandon Baker I invest out of state also and I kind of have the same concerns about needing someone to be my eyes and ears to see all the issues with wholesale properties. I had been trying to find people that do what @John Skaggs describes in my market. But I am also working out some arrangement with my PM, who is also an investors and agent, so he has that perspective. I offered him a flat fee for wholesale deals analyzed and visited if it doesn't result in a purchase and a commission if it does result in a purchase. But you have to trust that the person is capable and their interest is aligned with your's. My PM knows that it will be a property that he will manage. So that kind of addresses the alignment concerns. It seems to works since most of the time, he can weed out things and say something is not even worth a visit and don't have to charge me. He also told me this compensation arrangement is fine, but he doesn't want to simply do any transactions just to get paid more. I do worry a little that my PM maybe too busy and have too much on his plate, just like any other good PM would be. 

@Charles Situ , that's what I'm working on now, figuring out how to structure an agreement so my boots on the ground can help with the due diligence. Do you mind sharing what you are paying for both a deal that goes through and a deal that doesn't? 

@Brandon Baker To be honest, we have not formally finalize the numbers. I had suggested to my PM $200 flat fee and 1.5% commission, but I told him I am open to negotiation and more importantly that the long-term goal is a good property that he wants to manage. Yet my PM still gives me feedback on wholesale deals I send him and still has not charged me for the last one he visited and we decided to pass. I have heard others in a forum I posted mentioned $150 for the flat fee. 

@Charles Situ thank you! This really helps!

@Brandon Baker I have to add on the $150 that one person mentioned, He said it is "site visits to take an Evaluation Video, but not inspection." 

HA.  BP removed my reply.  Hope yall remember what it was.