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Updated over 7 years ago,
Wholesaling out of state
Hi everyone - I am based out of California but would like to wholesale out of state. As a wholesaler, I would provide the ARV, repair estimate, and purchase price to my cash buyer investors.
In order to get the repair estimate, I will have to send a general contractor (GC) with experience into the property to do the bid (so I don't have to be there). However, I want to make sure my GC benefits in some way - either I pay the GC for each bid they do, or they get the rehab job. If I am just wholesaling, I will not be able to offer them the rehab job for the current property because it is up to the end buyer to decide who to hire for the rehab.
What I can offer to my contractors is money for their time and effort.
For the experienced wholesalers out there, how do you make sure your GCs are taken care of? Do you pay them, if so what's a good price, and how do you determine that?
Or what other ways do you make sure that the contractor benefit in some way? I've heard another person tell me that he would give them a future job in the area.
Thank you for reading.