As a HomeVestors franchisee and President of the Tidewater Real Estate Investor’s Group in Hampton Roads, VA, I witness lots of people try to break into the real estate investing arena. These are the top 10 mistakes I see new investors make when trying to wholesale a house to a landlord or rehabber. In future blogs, I’ll expand on each of these mistakes, so stay tuned!
1) Paying too much for the house in the first place
2) Using tax assessment, Zillow, or an old appraisal as the value
3) Inflating the ARV when marketing to your investors
4) Deflating the repair estimate when marketing to investors
5) Not getting termite/moisture inspections
6) Under estimating what it will cost in real estate agent commissions, buyer’s closing cost assistance, and repairs to get it sold
7) Buying houses with White Elephants
8) Not knowing who the real cash buyers are
9) Putting houses under contract without options when they don’t have the financial ability to close
10) Not putting a property they have under contract in MLS if they don’t get it sold the first two weeks.