Paying Pros in whokesaling due diligence. Is it worth it?

[Scott Johnson]

This is likely a dumb question, but my mentor in Driving For Dollars Wholesale trained me to learn as I go when doing repair estimates for wholesale deals and use online calculators.

My goal is to develop automated processes to prepare properties I get under contract and provide quality to my cash buyers by doing some of the work for them up front and developing a standardized report for each propery we’re marketing to them.

My plan After getting a propery under contract:

$300 - I’d have a contractor come through and write up a Scope of Work for repairs ($160) and a plumber scope the sewer and quote any repairs ($140). The contract would be renegotiated, if need be based on the findings.

$510 - I’d the have a comparative analysis done ($60) and have the propery cleaned ($300). Professional pictures would then be taken $(150) and we’d market the property for sale online.

$45 - All information, pictures and reports would then be added to our Property Report by a freelancer ($45) and then emailed to our cash buyers. The report has been professionally designed, along with a credibility packet we give to potential sellers when we meet with them.

End result

It would take $855 (and roughly a week) to get the property we’re wholesaling ready to go, and if a contract won’t be renegotiated, we be out $300. If the contract falls through after that, we’ll be out the entire amount.

My questions:

Is it worth spending the money to automate the processes? We’ll eventually look to hire someone who’s knowledgeable about repair costing.

Am I benefiting my cash buyers by having these reports done and putting them into a report?

I feel like I could be just looking for ways to spend money. I’ve completed Wholesale deals without any of this, so I don’t necessarily have to. I’d prefer to be seen as a professional, not a “fly-by-night” wholesaler. I’d also calculate these costs into my offers.

Thanks in advance!