Hamtramck, MI · Member since 2017 · 7 posts · 1 vote
I am wondering if a property is listed for 30.000 and appraised at 40.500 could that be a good wholesale deal, and how would I go about finding a buyer. At this point im just jumping in and trying to get starting. Thank you.
@Bill Gulley recommends learning the basics of real estate, then wholesale. No matter the niche you choose, learning the basics seems like the best place to start. I plan on getting my license to learn the basics, and if I want to wholesale, I'll be able to legally market a property.
@Bill Gulley recommends learning the basics of real estate, then wholesale. No matter the niche you choose, learning the basics seems like the best place to start. I plan on getting my license to learn the basics, and if I want to wholesale, I'll be able to legally market a property.
Loveena Wade can’t really tell if he’s a good deal or not based on the information provided. Traditionally a wholesaler does ARV*.7 - Repairs-wholesale fee. So if it’s ARV is 40k and needs 5k in repairs and you want to make a fee of 2k, then you’d have to offer 21k
Hope this helps!
Caleb this might sound crazy but how do I estimate repairs? Should I bring a contractor with me when I go see the property? And when you say ARV. 7 is that meaning only offer 70% Percent of the asking price? I Know I'm new but I'm studying daily. 🙂
70 percent of after repair value. You can bring a contractor or learn to estimate the repairs yourself. There are books on how to estimate repairs. Either way can work.
The way I have learned to estimate repairs is buy using potential buyers to help me. I tell them the ARV and types of repairs needed using Mindy Jensens BP Blog Post on 48 point DIY Inspection. I also try and take pictures if seller is willing (I had one unwilling) and write down notes. I then have called up my buyers and they help me out. I now feel mostly confident in doing it myself. I think it is one of those things you learn by experience.
Welcome Loveena! You can find endless information on real estate basics, wholesaling, how to estimate repairs and more here on BP!
Caleb was right about the general rule of thumb being 70% of the market value minus repairs minus your fee equals your offer. This guarantees a solid equity for the investor.
There is a repair calculator tool here and you can also bring a “repair sheet” with you to the house to check off certain essential repairs.
For those who are still grasping the concept of repair estimates, I suggest just shooting for 50-55% of the market value minus your fee for your offer.
Wish you success in your journey!
@Loveena Wade First, welcome to BP and jumping right in!
I think it's tricky to say whether this is a good deal or not because there are some many other elements you have to consider such as repair costs or is this a move-in rental you can wholesale off to an investor at $45k?
To conclude, as some of the posters have suggested, learn a particular Real Estate strategy and immersed yourself into that strategy and then you will find yourself talking the RE talks and with persistence start closing wholesale deals.
@Loveena Wade why are you looking at listed properties? The value a wholesaler brings to an end buyer, is that you can find off-market properties for them (not MLS, REO, properties). If the house is on the MLS, your end buyer also has a Realtor/Broker than can present an offer to the homeowner on the buyer's behalf.
James I never said it was a listed property... Why would you Assume that? Nevertheless it wasn't, it was a fsbo. Since you know where I actually found the listing do you have any useful advise?