Wholesale Deal Analysis

2 Replies

I am just starting out in the wholesale business and have yet to actually close a deal. I have been reading success and failure stories and I want to make sure that I've done my homework before I actually commit to putting the little bit of money I have saved up on the line. Are there any resources where I can practice analyzing deals? I want to make sure I have the tools necessary to determine if a deal is good or not. Additionally, could anyone with success in wholesaling give me an overview of how you go about determining potential deals? What are some key considerations? So far, I have done some reading on the wholesaling process, but I still feel as if my understanding is quite vague. Any help would be appreciated. Thanks

@Josh Rogers Greetings and welcome to BP!

I would recommend you start by understanding ARV and how to calculate it. This practice will get you familiar with your target market. Ultimately, you will be developing the skill of identifying accurate comparable sales or what agents call performing a comparative market analysis. You are looking for properties that resemble a 'subject' property as closely as possible (year built, square footage, beds/baths, type, SOLD within past six months, within a .25 mile radius from subject). You can try to find an agent in the area to help you with this or use a website like Redfin to track home prices in your target market. Understanding one's market is step #1 in my opinion.

Check out this article for a more in depth explanation of wholesaling.

https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/?utm_source=search&utm_medium=internal&utm_campaign=wholesaleguide

I wish you the best!

Peace!

Eric,

Thanks for the insight. From what I've seen about comps, there seems to be a lot of conflict over the process. Some people seem to swear by Zillow, realtor.com, or property shark. Others say partner with a local agent. What has worked best for you?