How to determine a good wholesale deal
Good Evening,
My name is Alexis and I am new to real estate investing and wholesaling. I haven't found a deal yet but I have created a small buyers list.
The home I am looking at now is boarded up and the listing says that they are asking $22k
I tried using the flip calculator on BP but it confused me a little.
I checked against 3 other comps and determined that the home can sell between $90k-$100k.
When I put the numbers into the BP calculator it gave me: According to the data you provided, you can afford to offer $27,900.00 to get this property under contract and your end buyer will pay $32,900.00 for the property, netting you a wholesale fee of $5,000.00. This is based on an eventual ARV of $85,000.00, a profit for your flipping cash buyer of $20,000.00, and a rehab budget of $15,000.00.
Financial Breakdown
Purchase Costs
| Purchase Price: | ($32,900.00) |
| Purchase Closing Costs: | ($3,000.00) |
| Total | ($35,900.00) |
Rehab Costs
| Total Rehab Costs: | ($15,000.00) |
| Total | ($15,000.00) |
Holding Costs
| Monthly Holding Costs: | ($2,000.00) |
| Total Days Held: | 90 |
| Total | ($6,000.00) |
Sales Costs
| Sales Price After Fix Up (ARV): | $85,000.00 |
| All Selling Closing Costs: | ($3,000.00) |
| Real Estate Agent Fees: | ($5,100.00) |
| Total | $76,900.00 |
| Total Profit for Flip | $20,000.00 |
NOW IT CONFUSED ME...
HELP NEEDED - I can't determine if the deal is good or not.
Thank You in advance.