Question #2 How much money is needed for fix-up and who determined the cost? This question is a very important one. Some wholesaler’s provide a rehab cost. If they have done their homework fine, but if not you could get stung. Make sure the quote is done by a qualified contractor and that it is in detail.
Other items to consider; DO they need permits and prints? Who will be over seeing the construction? Does this person have experience and can provide a substantial resume’. Make sure the quote is firm and how long the rehab will take to complete. Also be sure to inspect the work before you pay. If they know your are watching they are less apt to take short cuts.
Question #3 How many successful properties has the wholesaler actually done him/herself? Be sure to do your homework, especially if you are working a full time job, and are relying on this persons abilities. Always make sure that the person your dealing with knows what they are talking about. Chances are that if they have never completed a successful rehab themselves or have only done a few, they may not be qualified to advise you or they may be experimenting with YOUR money. I have done over 100 homes myself and will admit that I still cannot foresee everything. I have never sold anything to an investor before I had done several myself.
Question #4 Do they have all the systems set up to assist you through completion and beyond? Completing construction is just the beginning. Do you have an exit strategy? Can this person help you sell? Will they help with refinancing, if needed? What about property management ? Are they going to be there through the whole process, or leave after they get their money? Again working another job leaves you little time to deal with finalizing your property.
These are all things you must consider before moving forward. Please see next months’ newsletter for the conclusion of this story.
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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
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