Updated over 6 years ago on . Most recent reply
Right formula to use in Cali wholesaling
Ok so far I see that the 70/30% formula isn't quite recommended in Cali. But I get so many strategies that it gets confusing and less encouraging. I have cash buyer yelling (don't live in Cali) saying comp times 90% minus repairs times 80% than subtract the 10% for COS and than another 20% for state & federal taxes along with carrying cost, risk and profit for rehabbing, which I believe the 10 and 20 % are in consideration of the flippers. But then there is Sean Terry's strategy by adding the 3 lowest comps and divide by 3 and then taking out the COS, MR, and ROI = 10%, 3%, 5% and then the repairs which is #sqft times $8 -$25 or in Cali higher like $40 per sqft for serious repairs. And you will get your starting price. To get exit price add top 3 comps divide by 3 than times 70%. I like Sean's way but in Cali will it work? If you wholesale in Cali what works for you? Any advice is appreciate it especially with a formula for Cali. Thanks