Property Walk-Through

Property Walk-Through
The Reconnaissance Mission

Many wholesalers get nervous when faced with looking at a property the first time, and I'm here to tell you there's absolutely no reason it should worry you. The common misconception is that the homeowner is going to start rifling off questions you don't have the answers to and well, that just doesn't happen.

Let me ask you a something... Have you ever personally bought a house? Have you rented a house? Apartment? Chances are you've gone to look at a place for yourself personally or a family member, so why is this any different? (It's Not). Listen, if the property owner responded to your marketing, gave you information about the house over the phone, and then agreed to let you come walk-through the property then they want to sell, so stop worrying and be excited!!!

Don't worry about negotiating, estimating rehab costs, or anything else during the inspection, you only have three objectives while at the property.

#1 Taking Pictures - Lots and lots of pictures! You'll need them to look back at while calculating your rehab costs, and you'll also be sending them to your potential buyers, so they know exactly what the property looks like, and have a clear understanding of what repairs are needed.

#2 Building Rapport - Make small talk and be friendly, people are more likely to do business with someone they like so be your most charming self.

#3 Asking Questions - Remember on the phone when you were asking about their situation with the house? Keep it up! You need to know what's motivating them to sell the property. Did the inherit it, Have a bad tenant, run out of money to fix it up, get relocated, divorced... As a professional real estate wholesaler it's your job to be a detective and find out what it is that's motivating them to sell.

oh yeah, Be Prepared!

You're a professional real estate investor now so don't go into this all willy nilly. Take time to get prepared, so when you show up to the house you have everything you might need, and you'll come off looking a lot more professional. Now let's take a look at your home inspection checklist...

Business Cards - Shows that you're a professional
Camera - Have a smartphone that takes quality pictures or a nice digital camera
Flashlight - Small & Bright, I use a tactical light that fits in my pocket nicely
Pen & Note Pad - Again, a small note pad you can carry in your coat pocket works well
Pocketknife - Comes in handy for pulling up the carpet so you can check for hardwood floors and who knows what else
Screwdrivers / Small Cordless Drill - For removing plywood if the house is boarded up or whatever else comes up
Purchase Agreements - In case they're really motivated and want to sell right now!
Option Agreements - In case they're really motivated and want to sell right now! (but you're not so sure you can assign it)
Dress appropriately - Casual dress such as nice pants and a polo shirt are always a good choice (dressing in a hand-tailored suit to buy houses in a low-income area might not be the right choice, just like wearing a t-shirt and shorts wouldn't work for higher income areas, just use common sense)

Be On time!

This should go without saying (but I'll say it) be to the house on time, so the owner isn't waiting for you. I get out of my car when they show up and say you must be (sellers name) while reaching out to shake their hand. After that give them a business card and engage in a minute or two of small talk about the drive over, traffic or whatever.

Then I typically pull out my camera and say if you don't mind I'm going to take some pictures as we walk through so I can: "show them to my partner" "go over them later with the contractor that does my repairs" or "review them later, I look at so many houses sometimes I forget which is which" (choose whichever works best for you)"

The Inspection

I've probably inspected over a thousand houses for myself and the investors I've rehabbed properties for, and I've found it's easier for me to take a ton of pictures rather than trying to fill out a checklist while I walked through a house. When you go to inspect a property I suggest that you do the same, so below is a basic outline of my process.

Exterior Pictures:
Front of Property - Usually three different angles (right angle, center, left angle)
Address Plaque - For property identification purposes
Street View - Good for showing potential buyers what the surrounding houses look like
Sides of the house - For displaying general condition and window quality
Back of house - Again try to get different angles
Roof - Front and back, zoom in to show any signs of damage
Air Conditioning Unit - If Installed
Garage - Front, sides, back, roof and garage floor
Driveway - From garage towards the street, from the street towards the garage.
Sidewalk - From property line looking one way, then from the other property line looking back.
(Take pictures of any damage or items of concern, i.e cracked cement, broken windows, bad railings, broken stairs or any other damage you observe)

Interior Pictures:
Living Room - Floor, ceiling and a picture from each side of the room facing the opposite direction.
Dining Room - Same as above
Bedrooms - Same as above
Family Rooms / Bonus Rooms - Same as above
Bathroom - One picture from the doorway in and then photos of the tub, shower, sink, toilet and any damage you notice.
Kitchen - Floor, ceiling, cabinets (check for damage) countertop, backsplash and any damage you notice.
Stairways - Going to the second floor and basement.
Attic - If you have access check for signs of roof leakage
Basement - Walls (looking for signs of water damage)
Plumbing (check to see if it's all there)
Electrical (check to see if its all there)
Furnace - Pictures to show condition
Hot Water Tank - Pictures to show condition
Electrical Panel - Picture to show if electrical has been updated
Basement Windows - Pictures to show condition
(Take pictures of any damage or items of concern, i.e., holes in walls, light fixtures, lousy flooring, anything that will cost money to repair)

I know what you're thinking, That's a lot of pictures! Yep, it is... Every day I see wholesalers send out deals with only a handful of pictures and that's not the way to do it. Set yourself apart from the crowd by sending investors all the information and pictures they need to make a buying decision and you'll sell more deals and be seen as a true professional.

Here's an example of what your pictures should look like...

Sample Inspection Photos

Mission Complete!

Once you've walked the property, taken your photos, collected your information and built more rapport its time to head back to your desk and figure out what your offer should be. Don't feel pressured into giving them an offer right then and there, say you'll sit down and crunch some numbers and give them a call tomorrow. Be polite, thank them for showing you the house and be on your way...

As you can see this isn't as scary as most people think it's going to be, honestly doing a property walk-through is a breeze once you've done it a time or two so relax and have fun doing it. (it's all about the journey)

Video Walk-Through