Wholesale deal advice

[Kelli Van Doren]

Hi,

I am a new investor (haven't done my first deal yet). I met a wholesaler in my town who offered me a 2 bed 1 bath in a city 2 hours away. He's offering me the property for 31,000. He says it will sell for 48,000. It has a renter in it paying $400 a month who is a college student.

What do I need to do to do my due diligence from far away?

Thanks,

Kelli

[Rich Weese]

Kelli-I see a lot of red flags in this potential deal I'm sorry to say. I have never been a real favorite of the two-bedroom home nor have I been a fan of a single bathroom. In the old days we used to call that functional obsolescence. It also is a difficult situation to manage either for you or a management company. Two hours away is no walk in the park and for $400 a month it's going to be difficult to find you a good property manager in my opinion. Remember, the weighted telephone wholesaler is lying or exaggerating is to see if his lips are moving! I would be very nervous about this property for all of the reasons I mentioned above. Unless it is extremely difficult to find anything closer to your hometown. I'm sorry to throw wet towel on this prospect but as I've mentioned before, some of the best deals turn out to be deals that you never got involved in. Rich