Are wholesale deals always rehabs?

6 Replies

Good day,

Are wholesale deals always rehabs or can you find a perfectly good house at a discount?

In general... in the market cycle we are in now wholesale properties are fixers, leppers, etc.

In the last RE down cycle, it was common to find a "perfectly good house at a discount" via HUD sales, REO sales, and sometimes at the courthouse steps. Not so common anymore.

No, @Robert C. , not all wholesale deals are rehabs. While they are few and far between, you can find a perfectly move in ready property at a discount. This happens more for landlord buyers, because it is often acceptable for a rental property to be in excellent condition, but dated.

For a fix & flip (F&F)buyer, everything will need to be updated to enable a quick sale. This tells you as a wholesaler, that properties in need of updating are worth more to a landlord buyer than to a F&F buyer.

You can find and wholesales all types of properties. Most marketers focus on the beat up rental inventory, but I've purchased very nice turnkey houses at discounts far enough below ARV to wholesale them. Mostly, I will keep or list and sell them myself though.

What do you mean by turnkey?

Turnkey is a property that is sold to a buyer as a completed product, move in ready