Hi! I'm a new wholesaler in Chicago, IL and NW suburbs. I’m interested in getting to know more about what areas investors are interested in and how you run your numbers. Any tips for a newbie?
PM me. I'll give you my email. Send me what you have. How we run our numbers? It is simple math, yet you have to know the inputs. Basically rents minus costs minus mortgage. I've been doing it awhile, so I really just focus on price and the amount of construction dollars needed to get it ready to rent.
@Rada Chapkis - That's awesome that you worked way up from a leasing agent. Congrats! I'm no fortune teller, but I see a bright future for those with a great work ethic, and seems like you fall into that category!
Like @Brian Ploszay mentioned the numbers are somewhat straightforward. Figure out the right discounted purchase price based on comps in the area, determine rehab cost (if any), and figure out After Repair Value. Then add in your wholesale fee. Sounds so easy lol, but it's not. It is definitely more of an art than a science so we are always working to improve.
I like all of Kane and Lake county...Elgin, Carpentersville, Mchenry, etc.
Happy to help in any way I can. We do some wholesaling primarily in the city, but I can hook you up with some great connections in the NW suburbs if thats where you plan to work. Shoot me a PM and happy to help.
@Rada Chapkis Work backwards. Determine the ARV, subtract out closing costs and estimated rehab, and you'll reach your purchase price. You'll need to take a cushion off the purchase price to incorporate your fee. Try not to under estimate your rehab costs.
My advice - don't wholesale. Buy some units and hold them.
@Rada Chapkis The investors we work with, that are interested in Northwest suburbs or Kane county, like that area because the village regulations are laxed or non existent. Once you get north of Carpentersville in the Fox Valley there is few cities with rental license regulations. I imagine for investors that are buying in areas like palatine and Hoffman, these parts of Kane County will now become more attractive with the Cook County RTLO rolling out June 1. The new RTLO will effect as far west as Elgin and Barrington so some buyer habits will change. If you are not aware of the new RTLO I will DM you a link to the page we built out on our website around all the must knows.