Wholesaler in Detroit first potential deal

12 Replies

Hey everyone! I’m a active new wholesaler never done a deal before. I’ve been marketing for a couple weeks gotta text from this guy who owns this home he’s selling this 90% move in ready 3/1 bath home (updated kitten & bathroom) in Detroit. I’ve check comps homes are selling around 20-45k around the neighborhood rent going from 750-900. Nice home just need front & side doors maybe tlc needed to the garage & basement. My question to you guys is how do I determine what to offer in order to make a small assignment fee and be able to sell at the price an investor would want. I’ve always get stuck at this stage, I don’t want it to go away because it’s a potential deal I believe. Any suggestions?

@Shanae Williams

Have you toured the subject property? Do you have an idea of what it would cost to get it up to move in ready? You need to shrink the ARV range to 5k or less.

The basic formula is ARV - Needed repairs - 3-5k for assignment fee = offer

example $45,000 - $10,000(repairs) - $5,000 (fee) = $30,000(offer)

Hope this helps

Chris Silva, Real Estate Agent
(734)531-9073

@Chris Silva
Thank you for responding,
No, I haven’t but planning on to when I have an idea what I’m going to offer ( or should I do that first to determine the repairs for the front & side doors maybe garage & basement could some tlc but nothing major) I wouldn’t know how to price these repairs Or the arv. Determining what to offer has been difficult for me.
I believe the house wouldn’t be great for a flip investor but maybe just a buy&hold.

@Shanae Williams   how much is he wants to sell it for? How much equity is on the house? Does he have a legit reason to sell? Knowing this information before touring the property will save you ton of time in the long run. I don't even bother running numbers until I get this info from the seller. You will get calls from tons of "curious" tire kickers who just want to know how much would you be willing to pay for the house.

Those are great questions @Daniel Moctezuma he’s selling it for 25k I see on Zillow he had it 29k. I don’t know why he’s selling nor the equity but definitely will ask. I know he said he has 7 more houses that’s not ready to sell yet so maybe he’s investor his self n owns these homes. He also know I’m a wholesaler. 

@Shanae Williams to figure out what an investor will pay. Nail down the ARV, multiply by .7 to .75, subtract your estimate for rehab (since your new, add a 25% - 50% buffer), then subtract your fee. So if you figure the ARV to be $45k, and you figure $10k for rehab. $45k * .7 = $31,500 - $12,500 = $19,000. Then take out your appropriate fee. In this instance, $15,000 - $17,000 would be your offer.
(267) 520-0454

he’s a flipper whom he says he sell his homes fast so I guess I’m up against actual buyers not sure what to do at this point. He’s letting me find a buyer but until I find one we’ll talk about contracts not sure how to tell a buyer about the home without too much detail n the home is on the mls... 

If its already on the MLS, you are fighting an uphill battle. He likely has a real estate agent, who will want a commission as well. This doesn't sound like a seller that will be motivated enough to make this a winner for you.
(267) 520-0454
Originally posted by @Shanae Williams :

he’s a flipper whom he says he sell his homes fast so I guess I’m up against actual buyers not sure what to do at this point. He’s letting me find a buyer but until I find one we’ll talk about contracts not sure how to tell a buyer about the home without too much detail n the home is on the mls... 

All this makes it sound like it's a bad Wholesale deal. In my humble opinion it's best just to move on to the next one. I know you are just starting and it seems like there might not be a next one, but there will be. 

Chris Silva, Real Estate Agent
(734)531-9073

Thank you, @Chris Silva that’s what I’m thinking also welp , on to the next one! 

Thank you very much for your input.

@Jason DiClemente yeah I see now, bummer but gonna keep searching for that motivated seller I’m looking for, Thank you for your input, appreciate it. 

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