As the wholesaler, should i get a foundation estimate?

Question

I am in the very beginning stages of trying to a wholesale a house that is conveniently located right next door to me. The house needs a good rehab as well as foundation work. The foundation has numerous cracks over a inch wide in the basement. Despite the massive cracks, the foundation actually seems to be in relatively OK shape. I imagine the basement will just need a few piers put in.

My question to you guys is should i bring in a foundation guy to give me an estimate before bringing the house to my investors in order have a rough budget of repairs needed and make sure 40k is not needed for foundation work or should i just bring the house to the investors and let them get the estimate?

Thanks,
  DuRon

Bill Gulley · Answer

As mentioned, anything you can do at no cost to you to provide more information to evaluate a deal should be done. There may not be any structiral issues, get it checked out. If you're lucky you might be able to fill the cracks and give it a fresh coat of kills, not suggesting you hide anything, but a little bit of sweat, even if you don't own it may payoff. You'll need the owner's consent to do anything, but I've seen deals fall through due to fixable cracks and an afternoon and $50 might take care of it. :)

DuRon Netsell · Answer

Thank you for the replies. The answer seemed quite obvious almost immediately after posting.

In my town, almost every trade will give free estimates. When I purchased my foreclosure I got 2-3 estimates for electrical,  plumbing,  and HVAC even before I was under contract.  It is a great way to network and absorb knowledge

I am meeting with seller and 2 foundation companies on Saturday. I will keep you guys posted and will share my experience and lessons learned

Thanks again

Sam Craven · Answer

I will echo what Bill said.  I do rehabs and wholesales.  I will spend whatever i need to spend to make the deal sell fast and easy.  I had a house that didnt have foundation issues but where the masonry work was crumbling.  First got an engineers report for the foundation saying it was fine, then hired a brick restoration company to repair the masonry so people wouldn't feel worried about the cracked brick.  This cost me $1,100 and the property sold in 24hours to a buyer that was out of state.

There is a reason that i have a lot of repeat buyers that buy from me sight unseen and that they never last more than 48hrs.  I deliver property condition without a shadow of a doubt on anything.

Dell Schlabach · Answer

As a fulltime rehabber, for many years I avoided pretty much all foundation issues, and passed up quite a few houses that I would buy today.

So if you have a rehabber like me a few years ago, that you can give a qoute to with a warranty, your odds of selling the deal increase.

As John Klaus mentioned, foundation companies will give free quotes. We use a trusted reasonably priced local company that does lifetime transferrable warrenties on their work.

Today I can do quick estimates on most foundation issues, but anything questionable I bring out the pro.

On my first foundation project, I brought out four different "pros" for quotes. You learn a lot fast that way, if you are on site and ask questions.

Jon Klaus · Answer

Some foundation companies give free estimates.

Natasha Hylton · Answer

If its just this one time and your willing to pay to get the numbers, then be my guest but if your looking to wholesale in the future, It would be best if you can learn how to evaluate/analyze the property ie ARV, estimate repairs, comps, etc. to save time

DuRon Netsell · Answer

Thanks Wes, I appreciate your feedback and that is what i had kind of figured but had never attempted  to wholesale a deal before.

Wes Love · Answer

Absolutely DuRon any tools you can have on your side when marketing a project is incredibly helpful in negotiating. if you know the first 5 problems an investor will point out and exactly how to fix them then your sells will go alot smoother. Personally I have teamed up with contractors and rotate them out on giving me estimates on my houses to present to an investor as soon as I get a home under contract. The more polish of a presentation the better!

DuRon Netsell · Answer

I apologize for placing this in the wrong topic

As the wholesaler, should i get a foundation estimate?

Most Popular Reply