Can I Run Through my Start to Finish Wholesale Deal With Someone?
I am meeting with my first potential seller tomorrow for an exterior inspection and beginning of our negotiations. I know there are 1000 posts and articles about the process but I have some holes in my thoughts and would like everything explained in one place.
I house hack one duplex that I put a ton of sweat equity into. I started a mail campaign in Groton CT in hopes to find an off market house I could afford and if not I could wholesale.
I am meeting with a motivated and tired landlord. This is her only property. She has owned it for a long time and has a personal connection with her occupants. She does not want them to know right now that she is selling so I am posing as an insurance adjuster when we walk the property. I also expect that at least one if not all occupants do not want me walking through there house. One occupant recently lost there father to COVID.
The property has 2 buildings.
Building 1 is a 1br/1ba and a 2br/1ba.
Building 2 is a SFR 3br/1ba.
She states the collected rents are 3000/mo. and are under market.
She claims to owe 140k.
Lets say we successfully negotiate and come to terms on an agreement.
Step 1 is to sign the purchase and sales agreement. I already have an attorney.
-Contract should be contingent on a building inspection and financing? or should it be contingent on finding a cash buyer?
-Should There be any other contingencies?
Step 1.5 Earnest money goes to escrow.
Step 2 is getting an inspection. Do I do that and pay for it? Do my potential buyers do it? What do buyers expect? If I have good videos and photos is that good enough? Do cash buyers even do inspections?
Step 3 Handling the buyer. I would collect his earnest money (at least equal to the deposit I placed) and sighn the assignment contract.
Step 4 close the deal.
At what point should a title search be done and who pays for it?
Should I plan for an appraisal?
How am I protected if god forbid I can't find a buyer?
Am I missing anything?
Running comps on single dwelling properties are easy. How do I run numbers on a duplex and a single fam on the same lot?
I do not have a substantial buyers list. I will likely rely on Facebook groups to assign this contract.
Thank you for any input.