Wholesaler gets contractor or appraisal?

[Winnie Rim]

Hello everyone, as a newbie that has chosen wholesale to be their start of niche, I'm starting to understand the whole process of getting a motivated seller, but I'm confused on how I should handle figuring out how much repairs costs after walking through the home myself, should I do the research online myself? Should I hire a contractor to do a walk through? Or do I hire an appraisal? What I'm really unsure about is how I approach my cash buyer with a VERY good ARV on the contract, because I am NOT choosing rehab as my niche and am unsure of repair costs. I really don't want to mess this up.

[Lydia R.]

@Winnie Rim Welcome to BP! Winnie here is something that very few people will tell you about wholesaling. If you are going to be a wholesaler then you need to know a lot about rehabbing and a lot about buy and hold because those are your main buyers for your deals. You need to know about what they are looking for in order to find deals that are attractive to them. You need to know about rehab. You need to know about hard money. You need to know about BRRRR. You need to know about traditional financing. Wholesalers must have a larger knowledge base because they have to be able to evaluate a deal and determine 1. Is it actually a deal? 2. Who would want to buy this deal?

If you dont know how to estimate repairs then you need to bring a contractor when you walk through a house. An appraiser isnt going to give you a repair estimate, an appraiser is only going to give you an approximation of the property value.

Wholesaling is a lot more work then most people realize. Be sure that this is what you actually want to do before you get started.