Main Factors for buyers.

[Brian Wheeler]

So this will be my second property that I am looking at (3 weeks after my first close) and I wanted to brush up on some main key points that will either make or break a deal depending on the type of buyers you have. These 3 things will let you know (based on your buyers) if you should pass on a property and move on. 

1.) Fuses: If a property has fuses, that is a big expense for the buyer if they are having a contracting crew do their flip. Fuses are against most if not all codes in the U.S and must be replaced. This means that you will need to redo the whole electrical in the house and install a circuit breaker, which is a big time expense. Now if your buyer does his own work and loves huge projects, then no problem ,but be warned due to the cost and labor of this issue expect the buyer to want to purchase at a lower price, which will reduce your profit 

2.) Plumbing: This is another big issue more common with abandoned properties. You will run into some owners who turn off the plumbing because they do not live in the house or you will have some who haven't touched it which means it is broke. Again this is a big issue for some so if your buyer does his/her own work great! If he/she doesn't then expect them to pass on the deal or buy the contract from you for a lower price. 

3.) Foundation: Now we get onto the biggest expense of the big 3. The foundation of anytime must be up to date for your area. If it is not it could easily be a 20-30k job Minimum depending on where you are. I have ran into properties that could not be restored and would be cheaper to tear down than it would be to fix just because of the foundation. 

#1 Tip to make sure your deal goes through

Now obviously there are a lot of factors that go into your wholesale deal going through but I am going to talk about what I just discussed. 

1.) Talk with your buyers about these three things and ask if they are willing to work with them

 Once you know what your buyers want you can now look at a property and tell whether to pass on it or not based on the big 3 and if your buyers will work with it or not. I have had some properties where I had to terminate the contract because of these main 3 components. If you want to be a successful wholesaler than you must think like a flipper.