Why Do Most Wholesale Deals Exclude Home Inspection & Appraisals?

[Clayneal Pononuihanohano Afaihere Garrigan]

Seriously!

How much Dough does it really cost to run a Home Inspection Report? $3-$400 bucks?

And...

How about an ‘As-Is’ Appraisal?

and maybe also an ‘ARV' Appraisal?

...another $3..$4...$500 bucks tops???

It seriously blows my mind how I have never seen even One ☝🏼Wholesale Investor ever produce a Home Inspection Report or any type of Appraisal on their deals... yet many wholesalers feel perfectly able to sleep at night with a $2.... $3....$5,000.. capital gains check safely tucked away under their pillow while the risk remains with the poor uneducated soul that just bought that deal...😥...

I’m not here to bash on any wholesalers within Our Come-Unity, but I AM suggesting that maybe it’s possible to create a New Wholesaling Business Philosophy where Wholesalers can partner with what I call “Small Money Investors” who’s small funds are specifically tailored towards funding simple Due Diligence processes with the intent of earning a healthy annual return.

In Theory:

By Producing a Wholesale Deal

‘With’...a Home Inspection Report in hand, and

‘With’...an As-Is Appraisal

and the ‘ARV' Appraisal in hand.

It’ll show an new level of trust & confidence in the buyer that this wholesaler is different than all the rest... You’d create a new wholesaling niche that would separate you from other competitors out there...

And People like ME would become Loyal ongoing customers that would easily buy every single one of your deals as fast as you can get a hold of them...

With all that upfront work...couldn’t you justify a higher commission? say a minimum of $10,000 per deal or more? (That way you make enough profit to pay back the small money lender).

I would Pay it...☺️

After traveling across 50 states and seeing the different REIA clubs and wholesalers nationwide and being a speaker in a few... I've always wondered WHY?

Why has no one done this already?

To those thinking about being future Wholesalers in the industry perhaps think of this as a Potential way of doing future business and Maybe... just maybe... You’ll set a new

Standard and change the entire industry brand

to the next level of Deals...

Sincerely,

Your Friendly Hawaiian in Denver

Afa

P.S. if I were you I would get a home

Inspector that is ridiculously meticulous in their report like 10+ pages and 400 picture type report...

P.p.S.s I would find the President of the Chapter of Appraisals in your Area 😉

Triple P.S. grab their resumes proving over 10 years in the game... and show those credentials to your Future Buyer like ME!

Aloha

[Jerryll Noorden]

no no no all wrong.

It is not a wholesalers job to make sure the numbers are correct.

it is YOUR job as the back end buyer. I would NEVER do any effort to even try to convince the back end buyer about the numbers.

You know why?

The second you list a number anywhere they will hold you to it. You are asking for trouble if you make any claims.

So obviously we are not just going to not give any numbers, but we make it ABSOLUTELY clear that the numbers we provide are OUR numbers. Those are the numbers WE would base our offers on and that YOU should do your own numbers.

The wholesalers's job is to provide you with off market properties at discount. That's IT. I am not going to do THEIR homework for them?!

Hell no!

It is not about the cost of the home inspection. It is about what it entails.

The back end  buyer needs to do their own due diligence.

Also keep this in mind. MANY investors claim on their website "no inspections, as is". This makes it more attractive for seller to sell. When I buy a house I AM doing an inspection. And if the sellers has something against it, buh bye.

But that is when I am the buyer. 

I have ZERO responsibility or accountability if you as the back end buyer decides to buy the contract or not. It is all on you.