What to do with wholesale calls?

Question

Preparing the future for when I get calls. I can flip them to a rehabber if the house needs repairs. How do I determine the amount of repairs it needs without actually looking at the property? I imagine that not all of these will be within driving distance. Can I just take the owners word for it?

What if the house needs no repairs? I can take it over sub2 if that's their problem and sell it owner financing.

But what if the house has no mortgage to take over. What are my options there?

Pete Perez · Answer

@Patrick Philip

Don't take the owners word for it. You'll want to visit properties that you make offers on.

Benjamin Barredo · Answer

@patrick philip

Well, if there's no room to negotiate a low price to allow for rehab and then arv, what do you think? Are you going to low ball the seller and screw them out of a good end deal because you want to rehab their home?

If there's no room for a rehab, talk then into a subject to and YOU landlord it. I thought that is what you were asking.  About a subject to?

John Thedford · Answer

Forget it. If it was THAT lucrative all the unlicensed brokers would be well off. There is nothing easy about real estate no matter what arena you want to play in. Attend a few REIA meets in your area and network with experience investors.

Patrick Philip · Answer

@Benjamin Barredo If the house is a good candidate for a rehab, does it matter whether the current owners are behind on their mortgage or not?

Who would my likely end buyer be if there is no room for rehab and the owners are not behind on their mortgage? For example, if they are just selling because they are tired of being a landlord. Would me end buyer be another landlord?

Benjamin Barredo · Answer

What you want to do is just get them to agree to let you sell it. Get them to sign a thirty day contract that discloses you'll either buy it or find a third party to. Sub2 or selling really depends on what the seller needs. If they are under water and there's no room to sell to a rehabber or even a landlord, and they need out, that's a good sub2 scenario. If there's some equity, however, it is a good candidate for a wholesale deal. Likely these sellers are going to want something. Anyway, get it under contract, then walk the property and analyze it. Give your estimate to potential buyers but be clear that it's their responsibility to practice their own due diligence. I mean, a smart rehabber isn't going to take your word for it anyway. They'll want to analyze the property themselves.

What to do with wholesale calls?

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