Wholesaling - Buyer Inspection?

Question

Hi folks,

I am interested to know how to deal with property inspections. I will give you the scenario:

• I found the property and put it under contract
• I'm now wholesaling this deal to a fix n' flip investor.
• The investor wants to inspect the property before committing.

How do you deal with this situation?

The questions that come to my mind are:

• Wouldn't the seller be p* off or weary that now suddenly someone else is on the deal and wants to "BUY" the property?
• In the event of inspection, do I need to be present?
• Investor can try to cut a deal with the seller. Unethical, albeit a possibility!

Thanks a lot, Marc.

Nick Peraino · Answer

This is an old thread. But yeah, experienced buyers will only need a walk thru.  And they are your partners in the deal.  This isn't a lie.  They technically are partnering with you.

Jason Hirko · Answer

@Marc Melo Snr This wouldn't make you uneasy if you had been upfront with your seller - the most successful wholesalers are. You have put yourself in a bind by not telling the seller what you are up to. With that said, does the buyer want to just walk the property or get a full-blown inspection. If it is the latter, find a better buyer. If it is the former, that is standard -  any investor is going to want to walk the property.

Roland Paicely · Answer

I couldn't have said it better than Jason Hirko.  Usually, an investor buyer will only want a walk thru.  That's very typical.  Most will not do a complete 4-5 hour inspection.  Have a plan 'B' in mind if you've already committed to that buyer.  Next time use someone that will only do a walk thru.

Marc Melo Snr · Answer

Thanks @Brian Ploszay. I really like the concept of wholesaling, however this is one the things that make me a bit uneasy with it.

I guess that this is the type of situation that you have to deal when the issue arises.... would love to hear from other active wholesalers here on how they deal with this.

Brian Ploszay · Answer

This is one of the problems with wholesaling, if the seller doesn't know that you are flipping the contract.

Pick your buyers carefully, so they don't do a full blown inspection.

Wholesaling - Buyer Inspection?

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