Wholesaling Off-Market Property

[Quinton Lantier]

We got a tip on an off-market property from a RE agent we work with. We ran the numbers, and they look good. Did a walk-through of the property and it looks good. Only problem is the seller wants $2000 EMD and no option period. They also want to close within 10 days on it. $2000 EMD is a lot without out an option period to get it under contract and our buyers list is not that strong. Open to comments and suggestions. Thanks

[Andrew Postell]

@Quinton Lantier that is somewhat common for a wholesale deal.  I've even seen $5,000 deposits required.  When you participate in a wholesale deal you should be able to walk the property and know what needs to be done right then and there.  Knowing your renovation and after repair value is critical to landing these deals.  They can work but sometimes the seller has to close asap and there might not be any room for an option period at all.  Texas is a big state but up here in Dallas a lot of investor networking groups have contractors at them and they can usually tell you to use X figures for X.  Or estimate repairs based on X.  And being able to run your own comps is also really important.  This might not be what you wanted to hear but this is absolutely what you need to know when doing wholesale deals.  Thanks!