Hello Everyone.
As I mentioned in my intro, my partner and I have about 30 rehabs under our belt from the last 18 months. These have been primarily jvs we have worked with Cash investors, so they have all been pretty straight-forward.
With that being said, being that my Partner is an IT guru, we have developed a software application that identifies and analyzes viable fix and flip properties from multiple channels, and we are finding a surplus in our local market we are just not equipped to handle internally. Due to this, we are looking to enter the wholesale market to capitalize on these "additional" properties.
At this point, we are developing a strategy to bring these properties to market, and I thought I would leverage the tremendous knowledge-base here on BP to make sure we are as prepared as possible.
I will begin with a few questions to start with, then as you guys share, will probably add additional as the thread grows.
1. Seasoned Investors and Wholesalers - I have noticed most "seasoned investors" do not really truly spend much time considering a deal from a wholesaler. Why is this? As a Wholesaler, we would only offer deals we would take, but just can't due to bandwidth. Is this not typical?
2. Total Property Rehab Analysis - We understand how important the ARV and Rehab costs play in to any deal we look at, which is why we have spent literally thousands of hours perfecting algorithms determining these figures. With every property we analyze we generate a 40 page report that displays any and everything about the subject property, comps, indicators, carrying costs, and more. Would something like this influence your decision to put more weight on a wholesale deal?
3. Working with Realtors - Outside of listing the property, how involved are you with your Realtor? Do they funnel properties to you for you to look at?
4. Procuring The Contract - I have researched multiple ways to "procure the contract" on the property; Double Closing, Assignments, and LLCs. From a Rehabber/Buyer's perspective, which is the most ideal for you? Personally, I would think the LLC model would be the cleanest and most cost-effective for all parties.
5. Earnest Money - Typically we offer a pretty substantial amount of Earnest Money for our own deals to ensure legitimacy with the listing Agent/Bank. What is standard out there from a Wholesale deal perspective?
I know I am asking allot here, but this should at least provide some direction for us to get going. I really look forward to hearing from you guys!
Dustin P
