How long should an inspection period be?

Question

I heard that the least you want to do as a wholesaler on a really good day would be 7-10 days. As a beginner, I think that’s way too tight.

Since I’m just starting out, could I do 30? We’re not in a really good market, so I’m not expecting sellers to balk at this. Would realtors have a heart attack?

I heard that the normal inspection period for a retail contract is 10-15 days. I’d like to ask for 30.

If they’re really sloppy properties and they’re a train-wreck and a mess, can I put 90?

Shiela R. · Answer

Hey @Mike Schorah.  Where are you?

@Bob Stevens has a good point.  As a wholesaler, you need to know your market - meaning you need to know what the as-is value of a property is upon a walkthrough. Put an allowance in your numbers to cover anything unexpected.  Be conservative! You should be able to do a walkthrough and sign the contract on the spot.  Allowing up to 7 days for inspection is reasonable.  But that's in the contract you flip to the end buyer.  Inspection is ultimately their burden. They'll take it from there. Time is of the essence for the seller and the investor you end up selling the contract to. Don't get stuck on inspection.  And don't use realtors for wholesaling unless they are giving you good info on stale listings or some kind of benefit. I say that as an investor who is also a Realtor;)

Jerryll Noorden · Answer

For crying out loud, people.

The inspection period is an INSPECTION period.

It is not a "trick" to get time to finally get a buyer on the hook.

So it should NOT be  0. It should not be 60 days, it should not be ANYTHING other than the time it takes you to get your buyers scheduled for them to check out the house, inspect it, and allow them a reasonable amount of time to get that inspection done.

60 days?

You offer CASH for their house so you can give the seller a FAST transaction do you not? 60 days? I can sell a house on the MLS the traditional way faster than that.

Y'alls  hate for wholesaling is so intense, that you form your own image of what wholesaling is based on how others do it (wrong) and now you hate the strategy itself. That is just quite stupid honestly. So people use guns to kill other people. So are you going to hate the entire human race?! The strategy of "wholesaling" is a tremendous benefit to motivated sellers. Not because most people don't know how to do it right does it mean the strategy is bad right?

Try to be a bit more intelligent, people. It is truly embarrassing!

The reason why you don't know the correct answer is because you are whoelsaling wrong.

This is what you should be doing:

We tell the seller we are going to wholesale. We explain to them the risks, benefits, how it works, what to expect and how we make OUR money.

Once you do that...  try again..

How long for the inspection period? Now the answer is VERY clear yes?

You didn't know that answer because you do wholesaling dishonestly.

Guys, WHY is it so hard for you to understand the simple concept of honesty and transparancy? It is absolutely beyond me. You MUST have seen my countless posts with the proof of how we make millions by simply being HONEST. Honestly works. Why is this so difficult for you all to see?

Eliott Elias · Answer

When I wholesale I shoot for 60 days

Bob Stevens · Answer

You are more politically correct then me LOL , This person should not even be looking ,,,,,, yet. MUST learn 1st,,,,,

Anthony L Amos Jr · Answer

It all comes down to how fast can you put money in the seller's hands. If your competition is closing in 7-10 days then you should aim for that as well. One of the advantages of working with wholesalers is quick closings. Establish relationships with inspectors and contractors beforehand so you can call on them to do an inspection asap.

Bob Stevens · Answer

Wholesalers should get zero days.

Bill B. · Answer

You might get a 30 day inspection period if you put down $10,000 non-refundable EMD. Maybe. If they don’t have any other interest. 7 days is plenty, 10 days is overkill. A seller wants to close in 30-45 days, not have someone come back in 30 days and say “hey I don’t know what I’m doing so I’m going to need $10k off for broken stuff I could see when I walked around the property.”

Would you want to sell to someone that says it’s going to take them 30 days to do an inspection?. If you’re going to start the relationship off on a lie, pick a better one. Tell them your wife is in Haiti helping the refugees and you need her approval, but you’re definitely not going to start looking for a real buyer after you lock up their property and ruin their plans of moving on with their lives.

How long should an inspection period be?

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