Need help to understand part of the wholesaling process

[Natasha Bradford]

Hello everyone,  

I'm a newbie wholesaler who is doing this as a side hustle remotely. I'm currently looking for distress properties to skip trace the owners with hope of getting my first wholesale deal. 

This is my issue, there is a part of the wholesaling process that is not clear to me, it's the process or steps after the property is under contract with the seller and before you get to the closing. I think it is refer to as the (inspection period) 

1. What should I be doing during the inspection period, especially operating remotely? 

2. How long should the inspection period last for? 

3. How can I get the property inspected  or who is best suited to perform the inspection on the property? 

4. How do I know if the inspection results/feedback is accurate?

5. What should I do with the inspection results/feedback (if there is anything for me to do)?

6. Do the inspection results/feedback have and impact on the contract with buyer (if yes, how that is handle)?  

7.How the payment for the inspection is been made (if any)?  

8.Who pay the closing cost when using an assignment of contract in New Jersey?   

I need your help.

Kindly advise me on the right path.

Thank you!

Newbie virtual wholesaler.                                                                                        

[David Ramirez]

Hi Natasha, 

With all due respect, wholesaling is not a side hustle. People tend to think that because of how some gurus make it look, but it's the absolute opposite of a side hustle.

You don't need to do an official inspection on the house; I don't know where you got that idea. Don't get me wrong, you could send an official inspector and ask for pictures from them if you'd like to provide a report to the buyer, but you don't have to. None of my buyers have ever asked me for an inspection report. During the inspection period, you should send someone to take good pictures of the house to confirm the condition you were expecting based on how the seller described it over the phone. You should know how to estimate rough numbers based on the amount of work the property needs.

We do a 15-business-day inspection period on every property, which turns out to be 3 weeks. During that time, the first thing you need to do is get pictures of the property to confirm the condition. Once you confirm the condition and your numbers look good, you should open escrow with a title company so they can start their process (you should let them know you'll be assigning the contract, so they hold off on the lien search until you have a buyer in place) and focus on marketing the contract to potential investors in your area.

There’s a lot more to cover, so feel free to reach out, and we can jump on a quick call. Don't try to wholesale without first understanding the entire process and its fundamentals.