Potential Wholesale Deal

[Charles Bass]

Hello,

I think I have a potential wholesale deal that I am going to look at tomorrow (August 23,2020). It will be my first time attempting to wholesale. The property I am going to look at is a fsbo deal. What are some good questions to ask the home owner so I can determine if it will be a good deal?

[Brenden Mitchum]

Hey @Charles Bass

I'm a little late here since it looks like you already went out to the property.

However, the questions you ask the seller are not very important in terms of determining if you have yourself a good deal or not. They are important to make a good deal happen though. What I mean by this is that your own due diligence and underwriting is what matters. It's up to you (or your contractor) to determine the condition of the property and how much it will cost to fix it up. You will also need to determine the ARV. These are the two most important pieces. Now you can determine what a good price would be that will allow you to pick up your desired payout. You can ask the seller all the questions you want about potential issues with the property. If they are honest then this could definitely help but you'll need to double check anything they did and did not mention anyways.

There are questions that are helpful to close the deal and get the price you need. I am sure someone has a list of these but what is really important here is that these questions tell you more about them. Show that you're interested and want to learn more about them and their property. Questions about how long they've owned the property and why they're selling are standard and give you good information to use in negotiations. Remember, first seek to understand what the seller wants, then help them understand your business and what you need to pay to turn a profit. 

Please, feel free to message me anytime if you have other questions or just want to chat!