Wholesale contract with no option for contractor walkthrough

[Karah Collins]

Hi all! Would love to hear your perspectives on this.

I am thinking of taking a deal from a wholesaler and this would be my first wholesale deal in addition to first time using hard money.

I’ve only viewed the property via photos and when I asked whether I could coordinate a contractor walkthrough to get his estimate on repair costs, was told this could be difficult because the current owner had been burned by a wholesaler before.

Part of the wholesale contract has a provision for a full inspection. While this is good to establish a scope of work, it does not establish the price of said work. IMO the repair estimate of a wholesaler without a construction background could deviate significantly from the actual cost.

What would you all do?

[Karah Collins]

@Tara Sullivan

Thank you for your thoughts on this. I always believed that a good contractor could see the state of disrepair and give an estimate. I totally agree with paying for walkthroughs! When I think about it from my own perspective, I value my own time and only want to work with contractors who value theirs.

I think between that and an inspection which would expose any capex items needing repair, I could get a a ballpark figure.