Wholesaling in another state

[Dustin Fisher]

I live in Tennessee and I know of a deal on a duplex in Ohio. I have zero contacts there. The homeowner lives in Tennessee close to me. The taxes are behind by three years. I think he getting ready to lose the place. How should approach this deal?   

[Christopher Brainard]

@Dustin Fisher

Step 1 is always determining if the deal is a deal. What is the ARV? How much does it need in repairs? How much does he owe in back taxes? How close is the county to taking possession of the property? How much does he owe on the property? Is it rented? If so, how much? What are market rents? Does he even want to sell? What is he expecting from the sale?

Step 2 is crunching the numbers. Is it really a deal? If not, don't bother spending time on it. If everything checks out, I would get the property under contract to either buy yourself or assign to someone else. I heard that wholesaling in Ohio has been raising red flags lately, so I would speak to someone local to ensure you don't get into any trouble.

Step 3 is finding a buyer, which if Step 1 and 2 are done properly and it is a deal, won't be an issue. The biggest mistake most wholesalers make is trying to sell a deal that isn't favorable to the investor.

-Christopher