Do I need to inspect the property if wholesaling?

[Brian Whitman]

I am new to wholesaling and was wondering, when I find a deal that works and I want to wholesale it, do I need to have it inspected or can I just have my investor buyer have it inspected? There's really no need to have it inspected twice is there? If my investor buyer has it inspected and doesn't like it or there is too much need for repair then I would get out of the contract with my inspection clause. The reason I ask is that I am wheelchair confined but yet I see the potential to thrive with wholesaling in this economy. Basically, I would be virtually investing in my own local area. How does someone handle the inspection situation if wholesaling out-of-state properties?

Thanks,

Brian in Indiana :wowo:

[Jack Mize]

I've wholesaled a lot of deals that I've never seen. I let the buyers decide how much repair costs are involved because no two buyers are going to come up with same number. I used to go over properties and have contractors give me bids but soon found out it was a thankless task.

Real buyers couldn't care less what you think the ARV or repair estimates are. When I'm negotiating with the seller I use a rule of thumb that most houses need $8 to $15 a sqft in repair. I've generally come out pretty good estimating $10 a sqft on houses that I never see and my buy price generally affords me a decent wholesale fee.

I try to avoid looking at houses anymore. If I can get a contract negotiated over the phone then my potential buyers will let me know pretty quickly if my numbers are off and I can renegotiate from there.

I would never pay to have a property inspected that I am wholesaling. The buyer can do that if they like.

Hope it helps.