What to do after finding a whole seller

Question

The big thing for me know is learning how to pan through all the deals from wholesalers I have coming my way now. What are some red flags I should be looking for when it comes down the property in distress? Foundations? Trusses? Sagging? how old the roof and HVAC are? and what are some Green flags that stand out that make you feel it is a good deal?

Eliott Elias · Answer

Do not spend more than 5 min analyzing any single family deal. Use the 70% rule to weed through deals, most don't work even without running your rehab numbers.

Tyler Brantley · Answer

Hey Charles thanks for your reply! What have you bought from a wholesaler before?

Charles Carillo · Answer

@Tyler Brantley

I would mainly be concerned with the cost of the repairs (add 25%+ to what you think) and the after-repair value. Many times when I see wholesale deals, there isn't enough of a discount to make a profit or the ARV they are stating is not possible or the repairs are grossly underestimated. You can easily check the ARV online, and have an idea of what your holding and financing costs will be. To verify the repair estimate on your first couple of deals, I would hire (pay for) a contractor to walk to the property with you. They will tell you what is easy to repair/replace, and what will be expensive. I also guarantee they will find items that need attention that were left out of the repair budget.