Spring Hill, FL · Member since 2013 · 28 posts · 0 votes
Moving!! Well- not really packing up a truck with my stuff, just thinking of wholesaling in other areas in my state. I have a buyers list that is non-responsive-wait before you think "are your deals-really deals" 30-40k profit on everything I send, some even more 60k profit!. I use the 70% rule , subtract rehab costs etc... These are good deals. The buyers That do respond are low balling to the point that my realtor laughs at me all the time!! I am not making much money, and this needs to change in 2014. So I am looking to move into better markets here in Florida. Problem is-I NEED A PLAN OF ACTION TO GET THIS GOING QUICK! ANY HELP YOU ALL CAN PROVIDE WOULD BE AWESOME!
Do you know there are no good buyers in your area? I find that hard to believe. Is nothing being rehabbed? Are there no landlords? How did you build your list?
If you market is in the dumps it is harder to find buyers but easier to find deals. When a market is hot it is hard to find deals but easy to find buyers.
It could be your numbers while intended to meet the 70% rule, don't really. Many new wholesalers send out deals and think they are good deals when they are not. I know because I read their posts here regularly.
Also it could be that your market is slow, so 70% doesn't work and you need to be at 65% or even lower. In my market the numbers have been skewed and way off what traditionally works, but that doesn't mean there aren't a lot of people making money here.
To me 110k offer 7k into it, stage it, list it at 145k-make about 20k-25k no brainer to me. Am I wrong?
Yup, you're wrong. It will never appraise and/or get through underwriting at those numbers if your buyer is planning to get a loan...
I forgot to go I to those numbers on my post. Frank is forgetting selling costs, carrying costs, purchase costs and unexpected costs. Selling costs=10k, carrying costs=5k minimum, repair costs 7k, purchase costs=3k, unexpected costs=5k. Total costs = 30k plus 110k purchase price and it sells for 145k. Best case scenario someone makes $5,000 assuming quick close and they are not using hard money.