It is up to you to determine how much the repairs are going to cost you and you should also determine what the after repair value is. Every time, and I mean every single time I took someone else word for the value of a home that I was buying I got burned. I strongly urge you to do your own due diligence.
Let’s assume that the wholesaler you are working with isn’t stretching too far. Say the home is worth $70k after fix up and they tell you $75k, and they tell you that it will cost $8k to fix, but it actually costs you $13k. You just lost $10k of what you thout you were going to make.
DO YOUR OWN DUE DILIGENCE. IF THE DEAL STILL STANDS UP THEN DO IT.
I’m in the Atlanta area and am about to buy a property from a wholesaler. The wholesaler provides an estimate of the cost of repairs and an estimated after repair value. They can also provide hard money financing.
I plan to buy the property, have the repairs made and rent the property or do a lease option.
Would appreciate comments on:
Experiences with purchases from wholesales
Experiences with the estimated after repair values