It’s absolutely amazing how much you can increase your profit by changing the appearance of a property. Regardless of whether it is a wholesale property, rental or a complete rehab for sale the results will be the same. Clean up…Clean Out…and Cash In.
Many new investors are wholesaling properties because it is a simple way to get into real estate investing. It can be done on a part time basis, usually requires little to no money to get started, the properties have the potential to turn over quickly and produce a payday.
These homes usually are in some state of distress and neglect. Buyers are expecting to see issues and problems when they look at a wholesale deal… but if you are willing to take time to make some simple low to no cost improvements…your wholesale check may magically increase. Add a few of these suggestions to your tool box and see what happens.
- Cut the grass and trim shrubs around the house.
- Remove unsightly debris in the yard
- Sweep “broom clean” the interior.
- Sweep out sinks and bathtubs, even though they need to be replaced.
- If the toilet has not been flushed and is emitting revolting odors…flush with a couple 5 gallon buckets of water and pour in a bottle of disinfectant cleaner from Family Dollar, Dollar General or other stores where you can find cheap products.
- Remove cobwebs. Even experienced buyers don’t like a spider in their face.
- Remove as much interior debris as possible to allow buyer to see what features the home offers
- If damaged ceiling tiles are dangling from the ceiling, consider removing.
- Pull up old ripped vinyl to expose the floor. This helps buyers see any damaged areas.
Make things easy for your buyer. Do your homework and have information available for the buyer that offers him the facts and figures they need to make a decision.
- If you have a website post photos and information on the property ( after you have done the above suggested improvements )
- If you do not have a website, create information sheets that can easily be emailed directly to your buyer.
- Have printed information sheets available on site when you meet your buyer.
- Include a proposed scope of work.
- Don’t try to hide repairs. Offer solutions.
- Include estimates of the basic repairs needed.
- Include several comparables of similar homes that have recently sold in the area.
- Include the after repair value
- If this property is best used as a rental, offer area rental rates for comparable homes.
- If the buyer is not familiar with the area, provide a list of reputable contractors.
Following a few simple suggestions will set you aside from other wholesalers and have investors calling you for more deals.