BiggerPockets

When a wholesaler is presenting a deal to you...how much equity do you generally like there to be? (in the cents on a dollar comparison)

Or in other words...what is a good equity evaluation for you?

25c on the $1.00, $50c on the $1.00....etc...

30% equity is the minimum I will accept in a deal at closing at any time. However, with the market in the tank, I'm currently buying with 50% or more equity.

Mike

Focus on other areas? Ok, just a quick little lesson on Wholesaling.

1. All businesses focus on what their customer wants
2. Your customer is the person that pays you
3. So in Wholesaling your BUYER is the customer. not the home seller. The home seller is your supplier.

So, I can get Beer Suppliers all day long, but if my only customers are Teen Dance clubs, I won't sell a drop. So you need to understand what your BUYERS want and what they plan to do with the property so you can properly market properties to them.

I would highly suggest that you understand more about all areas. Yes Cashflow if getting the property to make money each month.

Rent minus PITI (Principal, Interest, Tax & Insurance). There are other expenses as well, but that is the basic.