Whole Sale Analysis?

Question

Hello!

I am new to the wholesale scene and I’m trying to learn as much as I possibly can. I’m starting off in the Houston market and was wondering what percentage is best that I should use when analyzing a deal. I have watched some videos and I’m hearing 50 percent, some say 65 percent, and even 70. And with that being said please feel free to drop any other valuable information or jewels that you think may be beneficial when analyzing, determining ARV etc. I would greatly appreciate it.

Thanks In Advance!

Edward

Shaheen Pirouz · Answer

Our buyers look for their all in cost to be 70-75% of ARV. So for example, if the the ARV is 200k and the property needs 40k in rehab, they would be looking to purchase at around 100k. In this scenario, we would look to get it under contract anywhere below 90k.

Edward Emerson · Answer

@Yesenia Huerta

Hey how are you?! Thanks for the welcome, I’m actually in the Spring area as well. It’s a pleasure to make your acquaintance and yes hopefully we will be able to do some business together, I look forward to it!

Yesenia Huerta · Answer

Welcome Edward, I’m in the Houston/ Spring. Im mainly focused on buy and hold properties and maybe do a little flipping here and there. I’m a newbie as well, so I don’t know enough to give any useful advice. I just wanted to say hello & I wish you the best. Who knows maybe we’ll do business together one day.