Negotiations with Wholesaling… What should I know?

Question

Hi everyone! New investor here. I will be speaking with a wholesaler tomorrow about an off market deal for a duplex. I was just wondering what are some questions I may ask to make sure I’m not getting a bad deal. Based on all the numbers I’ve ran, it could be a great rental property. However it was built in 1904, and I do not know anything about the property other than the very cloudy photos I have seen. What are some things I should ask or have clarified for me? Inspection? Contingencies?

Thank you in advance!

Nick C. · Answer

The only information you should trust from a wholesaler is the address and the asking price. Figuring out whether or not it is a bad deal is up to you, you'll have to do your own due diligence. If you're unable to do this on your own, bring in someone who can. If neither of these are an option, do not buy from a wholesaler.

Most wholesalers will not accept contingencies or inspection periods. You'll need to figure out on the front end whether or not you want to buy it.

Patrick Kaiser · Answer

I don't know anything about properties that old but you should be getting hopefully a property disclosure from the previous owner. If the wholesaler won't give it to you and you're not really familiar with what kind of inspections to do, I think I'd take a pass. #1 thing is never trust a wholesaler. I'm not anti-wholesaling, just remember, they do not represent you or your interests. A little healthy distrust is a good thing in all negotiations.