Is it a deal or a dud?

4 Replies

Hello folks! I’m fairly new to the real estate investment business, and I’m currently focusing on wholesaling. I’ve been analyzing some properties in my area, and I’m still trying to determine whether some of these properties are potential deals or not. Sometimes I’m not sure if my MAO is accurate since I’m learning the business on my own as of now. However, let’s say “hypothetically” a specific property ARV is between $775k to $800k, asking price is $995k and repairs is estimated between $30k-35k. Would this be considered a deal or not? Please explain, so I can have a better understanding. Thank you in advance. Any feedback is welcome!

Try to use more refined AVM like Zillow. The algorithm is getting better but not for multi-families.

Sold Price-closing cost-rehabit cost=70-75% Zestimate

Wholesaling means you have a buyer already waiting for your closing. The reality is most people don't. Knowing your area it can even take longer to unload while you are paying for everything including interim loan interest. The margin 25-30% can be even smaller. Say you close in the fall, have it done year end, it may be next spring before people take notice of it. If the market is soft then you are in a hole so timing is everything.