who does the inspection on a wholesale deal?

It depends on if your planning to keep the property for a rental or assign the home to a new buyer. What type of offer is it? Continued success...........Lubertha

Hi,

Sorry forgot to mention that. It would be assign it to a new buyer.

HI forgot to mention it would be to re-assign it to another buyer. sorry and thanks for your help

Hi Daniel
Since you will be wholesaling you can just kinda figure off the top of your head what it will cost to cosmetically bring the house up to prior.
You will get to where you are pretty good at knowing the costs of materials, paints etc...to fix a house up. Then off the top of your head you can say "it will take my investor $10,000 or $20,000 to fix the house up" and them figure your profit in too....then you can have some kind of an idea as to what you can offer and still make a profit.

Now it is those hidden things that get expensive. Things that cannot be seem on the exterior like water pipes under the house....mold that may be hidden in the rafters...electrical problems etc...
You can go in and make an offer based on what you can physically see is wrong with the place or you can hire yourself someome to do an inspection.
I never hire an inspector on a house I am getting ready to wholesale. I always encourage my end buyer to get an inspector.

Somewhere here on the site I put some forms that you can use for your house inspections. Not exactly sure where but I will search for them.
Sissy

It will depend if you are paying cash or financing the property. If paying cash, you won't need an inspection unless you want one. If you are financing, the lender will require it before closing.
But when you are walking thru the property to write an offer, you will want to assess the property for the rehab that is visible.

Would you not want to have an inspection even if you are going to re-assign it to another person? That way if there are some under lying issues and the end buyer finds out about them from the inspection, will they not want a discount on the property due to the issues? I would think that this would kill the deal.
I think that having an inspection done will also give you more power in the negotiating process in scoring the property under contract.

Let me know your thoughts.

Could someone please shed some light for me please? My last posting on this blog did not get me an answer to my opinion. I would like to know if this would be a good leveraging point in the negotiation of the deal. Please let me know your thoughts as they are all learning points.

Thanks,

Jen

I did have an inspection on the deal I'm wholesaling now, because I was willing to keep it if the buyers didn't want it. Plus I considered it a good learning experience on what to look for. It turns out that the HVAC system needs replacing so I let my buyers know that. But I think that most investors that are buying properties wholesale would like to know if there is anything major going on. If it's just reg. rehab maybe not. Bottom line is they may not do business with you again.

Cathy

Hi

GCs would be your best bet. Just be careful about revealing information about your intentions and/or your business.

This way you can give the new buyer ready proposals from the GCs and if the new owner uses them everybody comes out O.K.

If not you simply used the the GC, however, thats part of the business. I could give you a price on a house in about 15 minutes tops.

Your really not hurting anyone. GCs just chalk it up for experience and include this in the overhead of there business.

Ask the builder

I was wondering the same things, like whether to get the seller to pay for an inspection or to just calculate repairs on just what I see and estimations. But a general contractor sound like the best route, you can think of it as a profesional estimation. Maybe you can build a relationship with a GC and he can do the estimation for nothing if you can assure him work in the future or on that particular property.

Good luck guys on all future venture.

Progression beats any recession!
Calvin