Real Estate Professional · Lees Summit, MO · Member since 2013 · 57 posts · 21 votes
Hi everyone - wondering what the protocol is for wholesaling and cash buyers regarding buying houses "as-is".. We have been active in the "buy-and-hold" model for several years; we have standard contract language regarding inspections (i.e. termite) that if its revealed that additional repairs/treatment is needed, the seller must remedy or the deal could fail. We are preparing to launch a more aggressive Wholesaling model in 2014 and have also seen the "cash buyers" claim to buy houses in 48 hours or less, etc etc. Those of you who buy this way, or get houses under contract for wholesaling purposes, do you have any inspections done, or do you just leave that to the investor you are flipping to? Case in point - we had a property under contract and discovered the original furnace was lined with asbestos, and the abatement quote is quite high - over $2000 on a $50,000 ARV. How would you handle this as a whoesaler?
Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
12y
Hi Mike,
You have a concrete reason to renegotiate with the seller on this or any other discrepancy that you find before the closing. Having the experience of a rehabber you are qualified to know what to look for and when to renegotiate if the deal has kinks in it. I'd say that could be a reason for you to increase your wholesaling fee to your buyer as well providing the numbers permit....