How inspect wholesaler deals with 1 week closings

Question

Hi,

Few wholesalers sending me deals. He wants closing in 1 week. I see some deals are in decent location in center of city. But price are high and properties are in distressed condition needs lot of rehad and lot of them older ones built in 1960 era. How to do proper due diligence in 1 week that way i am not in trouble after purchasing the property.  If i call inspector for every property he charge like 500$ each property. I do not have construction or handyman background to assess situation and repair costs of property especially inherent complex things like foundation issues etc. How should i proceed. Especially rental market and housing market slowing down do not wan to make big financial bluder at this point of time. I also have to use wholesaler hard money lender as DSCR type of loan takes like 1 month to close which will not work with this wholesale. I am also using some creative ways like business line of credit (bank charing 16% interest on 2 year load for 40k) for down payment which makes my numbers much tight and negative to begin with.  Wholesaler says I can do hard money loan(2 points and title document processing fee etc about 10k closing extra costs and 10% interest and i have to wait 3 months to complete rehab and then only i can refinance to DSCR loan with same hard money lender not sure same rule applies if i refinance with other lenders) then fix it and then do cash out refinance (at this point i may have to spend 10k again for closings) to get my downpayment out and repeat for next deal like typical BRRRR strategy. Please advise

Gp G. · Answer

Thank you for your great feedback. It makes mores sense to me now.

Jay Toluganti · Answer

You need to focus on one area, have a GC who can walk them. Wholesalers always push you but once tgey realize you are serious, they will work with you. You can always say if title is clear, my hard money lender can close in 10 days.