I had a few question I was unsure on before closing my first deal
soon. For example, what is best way to find comparable? What is the
best way to judge the arv price? When viewing the house I want to
wholesale should I have somebody take quotes on how much repair fees
would b if I don’t know for myself? When should I negotiate an offer
for the property and do i need to know all the information I asked
above before i do? And whats so questions or information I should make
sure I find out when with the seller at the property? And should i get
a real estate lawyer to write up my contracts or can I do it on my
own? Should I try to just focus on getting property cheap as possible
regardless of repair cost? And is it good to get some properties under
contract even if I don’t have buyers yet?
Thanks I hope you can get back to me with you advice
The best way to find comparables is through an investor friendly realtor in your area or you can subscribe to Real Quest for a monthly fee.
The best way to find your ARV price, is to run comps in that area from beds, baths, what year the house was built, square footage etc…Specifically you want to look at homes that are in prestige condition with the same beds, baths and square footage.
Yes you should negotiate price once you have done everything listed above!
You want to find out if they own the property free and clear. Find out if they are the owner of the property, or if they are another wholesaler. Ask them do they have any liens on the property that they may not know about.
If the deals are good enough and you have done the proper research to know the lowest price you can purchase the property, as well as knowing what you can sell it for to make a profit, I’d say go for it. Allow yourself at least 30 days under contract to market it for a buyer…you can even try for 45 under days contract. That should give you more than enough time to find an end buyer.
Yes you should always try to get the property as cheap as possible regardless of repairs. This will allow you to create a spread big enough where you can walk away from the closing table with a big smile on your face.
I’m new to wholesaling as well and I got my first contract locked up last week. I used Rocket Lawyer.com to get a option agreement for around 15 bucks. I wanted to use my lawyers, but the slackers were on vacation and I didn’t have time to wait a week for a contact. Do learn the laws in your State. I had to change the verbage in my contract because it referred to my profit as a fee twice. It is illegal in SC for anyone other than an agent to charge a “fee” to sell a house. Just a warning. Be Careful and know your laws.