NEED COACHING..FOUND HOUSE DRIVING FOR DOLLARS, OWNER IS WILLING

[Sophie Ben]

I DID A DRIVE FOR DOLLARS. I FOUND A HOUSE WHERE OWNER IS WIILLING TO SALE UPON RIGHT NUMBERS. IM NEW TO WHOLESALING SO THIS WOULD BE MY FIRST TRY AT THIS. NEED HELP WITH NEXT STEP ON  HOW TO GO ABOUT.  IM LOCATED IN THE SACRAMENTO CA AREA.. 

[Joanne Eriaku]

@Sophie Ben Some guidance:

Step 1: Conduct an initial desktop Appraisal- get a trial account with propstream, (it lasts 7 days), type in the address and you will receive a ton load of information about the property. Print it out or save it. Or check the tax assessor records that are usually online.

Step 2: Conduct a comparables analysis, Propstream will have a tab that pulls comparable properties around the area, choose the closest 3-5 sold properties to the subject property, for example, if it's a 3 bed, 2 bath, try and search for 3 bed, 2 baths within a 0.5 mile radius that have already sold in the past 6 months or so, if you find no properties, expand the criteria little like to 1 mile instead. The purpose of this step is for you to estimate your ARV(After Repair Value).

Step 3: Still within Propstream or right here in BP, plug the numbers into a deal analyzer, the key numbers are Estimated Purchase price, Repair estimate and After Repair value. Since she wont let you see the house, assume the worst repair wise and plan for a gut job. Keep adjusting purchase price till you come to an ROI you are comfortable with, that's the Make-An-Offer number for you to her, test it, verbally first, don't get into a contract yet, then if she accepts the verbal offer.

Step 4: Find a way of getting into that house to conduct a walk through or let the tenant or landlord conduct a video walk through or take detailed pictures of each room. This is the only way you will be able to properly estimate repairs and understand what you may have to deal with. 

Step 5: Adjust the deal analyzer based upon actual repair estimates, a contractor can help you estimate or use a home depot project calculator. If the ROI numbers still make sense, then Make an offer officially- by step 6

Step 6 : Have a Purchase and Sale agreement drawn up for you, make sure it has an inspection contingency and or finance contingency, involve an Attorney at this stage and have a title search conducted. open escrow with an Earnest money deposit- Do not give the seller the deposit, keep it in escrow.

Step 7: Get a contractor to properly walk through, estimate /quote repair costs . If everything checks out: Title, repair, numbers etc

Step 8: Find a buyer..this stage never ends actually, its ok to find a potential buyer from step 1 or even before you go driving for dollars, having an understanding of what a buyer would be interested in helps you know what to look for. There are 2 ways you can close a wholesale deal: You can conduct a Double Close or you can assign the contract.

Hope this helps