Rehab Guesstimating and Wholesaling in North Los Angeles

[Adam Cohen]

I went to a seminar over the weekend (a total scam to sell education, not properties) but was intrigued with the concept of Wholesaling. It seems like a quick, brokered deal to me. I have been in sales and marketing for almost 30 years. but I have a few major questions that might answer the question of why so many fail at it.

1) Do you need a license in the state of California to close these transactions?

2) Rehab cost estimating seems to be a part of the deal that is most important to the buyer. But if you do not see the property or not familiar with rehabbing, how do you even come close to estimating the cost to rehab? 

3) Is the wholesaler responsible for a correct rehab estimate or should the actual buyer (the rehabber) go see the property instead to get a better estimate?

4) Why are the investors willing to give away $5000 to a wholesaler in an assignment deal (until I have the cash for a transaction funding deal) when they could find the properties themselves? 

What am I missing? I am good at marketing and can probably find buyers and sellers but that rehab thing spooks me. Help!!