Wholesale/Rehab in Dallas

[Justin Burns]

This question is about wholesaling, but is directed at the rehabbers as to what you want/need. A brief background about my strategy; I do this part time and have done 3-4 profitable wholesale deals over the past year and a half. I have a successful methodology of finding properties, and I take the property into inventory as opposed to assigning the contract. Fortunately I have the ability to use my own money or have access to a pool of capital at reasonable cost. With all that said, my previous deals have been very straightforward. I did some basic cleaning, the structure was in reasonably good shape, and the grounds needed some basic upkeep. I currently have access to a property in N Oak Cliff at a very attractive price compared to ARV. The caveat is the grounds are very overgrown and it will need substantial rehab, not just cosmetic. Approximately 25 trees greater than 10" in diameter on 1/3 of an acre plus overgrowth. Roof issues but probably not replacing. Subfloor issues and perhaps plumbing and electrical. Complete refinishing of kitchen and bathrooms. Painting, cosmetics and drywall. So finally to the actual ?? As a rehabber do you prefer just cleaning and basic access? Do you prefer to have any, some, or most demo done that leaves you more access to issues and a blank canvas? Would you prefer and would it add value to do some of the repairs such as sub flooring? I assume with scale many rehabbers could do most of the demo at a negligible cost. So I'm just curious how much "prep" a whole seller might do that adds value to, reduces costs for, but doesn't interfere with the rehabber, to get the best sell price for all involved. Look forward to the input. Thanks. -jburns

[Rod Hanks]

What you are describing is called wholetailing. When I wholetaile a property I clean it, cut the grass, trim the trees, clean out all of the debris inside and outside the house, board up any broken windows and make it easy to access by repairing or replacing the front door. I then list on the mls and the majority of the time children or other relatives that want to live nearby mom and dad will buy. I find that I get a lot more wholetailing than I would otherwise by selling to investors.