Arlington, VA · Member since 2017 · 14 posts · 3 votes
Is there a list somewhere of the items that should be checked about a property when buying from a wholesaler? For example, I know that you need to check and recheck the ARV. Do I need to run the property through a title search and who does that for example? I do not want to miss anything when evaluating a property when dealing with a wholesaler.
In addition, do most people who use wholesalers get to walk through the property before they purchase them and if not how is everyone estimating rehab costs?
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
8y
@Erica Quarles I have never purchased from a wholesaler however I would only buy if they allowed me a walk through. I also would run my own ARVs (almost all the deals I am sent have incorrect ARVs) and I would only trust running title on my end. Truth is the wholesaler has a contract in place on a house, and I would treat it like any other deal where I run ALL of my own numbers.
Douglasville, GA · Member since 2017 · 45 posts · 29 votes
8y
The title search should be run by the title co or closing attorney depending on how your state does it. You absolutly need to run your own numbers. Even if your wholesaler is awesome and gets them all right, you need to be able to run the numbers if for no other reason than to double check their numbers. Otherwise you are trusting the the wholesaler to get the numbers right and represent your interests.
Walk through the property. You should only talk to and through the wholesaler and not the seller directly. It can confuse the seller if you start negotiating a price when they already have a contract signed with the wholesaler. Especially if you plan to do business with that wholesaler in the future.