Wholesaler · Boston, MA · Member since 2013 · 22 posts · 3 votes
I'm working on my second wholesale deal and one of the projects I'm developing is a single family home in Maryland. Property is currently held by an investment firm and they plan to auction it at the end of September. My contact with the firm is motivated to get it off their books and will sell it to me before the auction but tells me that I do not have access to the home's for inspection prior to the purchase. The neighborhood, purchase price and worse case rehab number (which are assumptions on my part) make sense for a wholesale property. I have buyers who I can present this to once I control it. Not being allowed to inspect this property prior to putting money on the table has me nervous.
Should I just pass on this property and move on to the next?
Wholesaler · Westminster, CO · Member since 2013 · 224 posts · 77 votes
13y
James, it's like going to Vegas... doing a deal like this takes guts, but as they say "no guts, no glory!" Sometimes you have to go with your gut instinct, and if doing this deal makes you nervous then don't do it; it's probably a good indication that something is wrong. On the other hand, my wife and I purchased two properties in Arizona sight unseen, and we live in Colorado. Yes it was difficult getting through the process, and we trusted our real estate agent to send current photos of the property, but we were still gambling. It turned out for both properties and they are producing great cash flow.
If you can see the outside; peak in the windows and have some assurance that it has good bones then maybe it's not too bad of a deal. On the other hand if they are not allowing you in to the property it could be an indication that something major is wrong and they are hiding it from you. An investment firm wanting to get rid of a property??? I would keep asking for permission to access the property, if they are truly the owners of the property. I never take "NO" as the final answer; if you keep asking different people you eventually will get the answer you want to hear. If the answer is still No, then insist on them to provide current photos of the property so an honest evaluation can be completed.
I am no no means an expert on wholesaling, but no matter what deal I do I trust my gut! Last piece of advice; have different exit strategies for this property prior to making the final deal.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
13y
"Willing to sell it to you before the auction" if you'll pay more than they expect to get at the auction. Won't let you inside....pass. I've bought houses without seeing the inside at auction, but Not because an owner wouldn't allow access.
Real Estate Investor · Upper Marlboro, MD · Member since 2008 · 289 posts · 80 votes
13y
@James
@James Swan Just starting out as a Beginner, I would never purchase a property that I have not inspected nor familiar with the area, there are too many ways for you to get hurt..
However, more seasoned investors make sight unseen offers and purchases, If they are familiar with the neighborhood. But they are buying so low their risk is very minimal. Good Luck.