Why is it important to have an Appraisal and Inspection Report?
:D Wholsaling is a great way to get started as a real estate newbie. However, I notice how some gurus don't teach their students to have an appraisal and inspection.
All of the investors I know that have serious cash to buy requires you to have both.
It's important to have both to consider if it's a good rehab/fixer upper deal. If the inspection shows that the cost of repairs is more than what you are willing to pay and if the appraisal can't get you the arv you expected it's not a deal and these are two clauses you should have in your contract to come out of the deal without losing your earnest money.
Okay, if it all works out to be a deal it's much easier to show a 25-30% spread to your investor-buyer when you have professional paper work to show the numbers.
This also lets your investor-buyer know you've done your homework!