Why aren’t my numbers working?

4 Replies

So I just started wholesaling virtually. Currently have 3 properties under contract and getting no real bites. Is it because numbers don’t work or marketing or both? Property 1- ARV 90k Repair 20k Asking 52k Single family 3/bd 2/ba 1700sqft Property 2-Arv 58k Repair 20k Asking 29k Single family 3/bd 1ba 1400sqft Property 3-ARV 190k Repair 2k Cash flow 2400k Two units . One has 4 bd 1 ba one has 3 bd 1 ba.. both rented . Asking 170k Are my numbers off?

ARV $90,000

- *% Sales Cost   $7,200

- Purchase Price $52,000

- Closing Costs    $3,000

- Rehab Costs      $20,000

That leaves Best case scenario if your ARV and rehab costs are correct at $7,800. These are numbers that will likely lead to a loss if someone bought it.

I'd need your addresses to tell you more but I buy in Memphis and I haven't seen them so it might be a marketing problem. Your numbers all look pretty ordinary though as we always assume seller is lying about ARV. PM me the addresses I'm happy to look at the deals!

As a wholesaler your most likely buyer would be a flipper or turnkey provider. As a general rule of thumb, once you know what the end buyer would sell the home for example say $100k once renovated, then you generally factor $40k-$45k less then that and that is where the flipper needs to buy it at so you need it lower. 

Also most wholesalers are far too light on what they think rehab amount is. 

Good luck