Investor · Dallas, TX · Member since 2014 · 142 posts · 44 votes
So I have seen mixed reviews here on BP....
If a wholesaler calls, emails or text a property with all the information and I feel it is the right deal...What next? I was under the impression from reading the book from J. Scott that you would then let them know you were interested and then get your inspector and GC on the phone to go out with you and double check the numbers the wholesaler has given you. I mean, you can't go off the wholesalers numbers can you??? I am confused by post I have read. Please let me know your thoughts and opinions. I don't want to do the wrong thing here and purchase with the wrong data. I also don't want to get passed up because I am doing it all wrong. Please HELP!
I think the wholesaler's numbers are just FYI so you can decide to see if you want to proceed to the next step: your own due diligence. Trust but verify :).
You need to check all numbers against your own calculator (like you mentioned about J's suggestions: with your own estimate methods, or inspector/trust worthy contractor if you're brand new in this).
The matter of fact, an investor client of mine just asked me to go out and give him a rough estimate (+-10%) tomorrow afternoon for a project that he plans to turn an offer in. I provide this service for my close clients.
Like some of the seasoned BPers suggested, build some cushion in your number just in case. Be a bit more conservative in the first deals. Not too much you might loose the deal, but at least making sure EVERYTHING is accounted for.
Wholesalers numbers are always supposed to be used as a guide, because they are an estimate. Some wholesalers numbers are obviously going to be more accurate than others. You ALWAYS need to do your own due diligence and make sure that you know exactly what you are getting in to. Having your contractor accompany you to inspect a property is a very good idea, especially if you are just starting out. Most wholesalers are going to be selling properties as-is, and without inspection periods, so you have to be as sure as you possibly can be when contracting a home. It sounds very obvious that you need to do serious due dilligence, but it's easy to get caught up in the moment and purchase a home that you think you love, and then find a couple very pricey mistakes that you missed.
The problem I am running into is the properties are so hard to come by that by the time my GC can go look at a home which is a few hours or that evening they are GONE! I am not knowledgable enough to know and it seems I am stuck between a rock and a hard place. This is really a tough position. I guess I just have to be patient and one day it will happen.
You are very right. The supply is low in the metroplex so they are moving quite quickly. Just keep doing what you're doing and you will find a property that you love. Good luck!