All Forum Posts by: Shaheen Pirouz

If you are wholesaling you should have a special provision that end buyer pays earnest money or that earnest money is due at end of option period. Around 25-30% of wholesale deals will fall out of the option period before sale is completed, and you don't want to be on the hook for earnest money on all of these.

Hey Ryan, welcome to BP!

From my experience, most people ignore estimated rehab costs from wholesalers as there is an inherent conflict of interest. That being said, I don't think it is a bad idea, just be prepared for people to dismiss your numbers and do their own homework, regardless of how detailed your SOW is.

@Duane Gunkler

And congrats on the contract!

@Duane Gunkler

If it’s a property that you are confident about, you could always purchase with short term financing and then refinance into a more conventional loan after. But only if you are confident that it will appraise.

Have you tried reaching out to local wholesalers? They do all the work of marketing and securing the off markets deals. Of course, there will be a premium attached for their work, and you can expect to pay cash or equivalent (hard money or line or credit), but this is still a great choice for someone who doesn't want to (or can't afford to) do all the work of marketing to find motivated sellers. Be sure to double check their rehab estimates and ARV comps if you decide to go this route. PM if you have any more questions.

One thing I haven't seen mentioned here is the cost of living in your area. $1M will go much further in the midwest vs in the Bay Area.

Sounds like a financing agreement. $x over y years at z% interest with an option period of n days. interest  What part are you having trouble understanding?

 The reason for this is because as wholesalers, we offer the home owner a cash buyer within a certain (short) time frame. Usually 10 days or less. With such a time constraint it usually doesn't make sense to allow the lengthy process of an inspection. That being said, I personally have no problem with inspections or contractors walking the property along with the investor, just as long as they are aware that they must close before a certain date.

@Daniel Boccia

Hey Daniel, congrats on your first property! Everybody has different goals, but for me personally, appreciation is just the cherry on top. The real cake is the monthly cashflow, debt pay down, and tax deductions. Don’t hesitate to reach out if you have any questions!

As long as you practice value-add investing, chances are that you will be more insulated from market downturns versus a traditional investor.