Still learning!

15 Replies

Hello all! First name's Charles but I go by Dave! I've been having trouble finding my first house to flip! The wholesale deals I get have too optimistic ARVs or need way too much work to make a decent ROI. Hoping to learn what I'm doing wrong here.

Also here to meet other Atlanta investors to network with!

Hi Dave,

From on Charles to another, don't ever base your fundamentals for purchasing on anything having to do with ARV. That's just as useless as buying stocks because someone says they are going to go up. Your RE acquisition should always be based on the as-is value of the property at the time you intend to acquire it - any costs for rehab/repairs/remodel. From there, you can then determine what you are willing to pay to get it, based on what your goals in acquiring the property are (fix/flip. ..buy/hold...etc.) Others, will argue that ARV must be considered to come up with your strike price. I would respectfully disagree and I believe the two are mutually exclusive...and should be. Why? One us a number that you can develop with 100% certainty. The other is no better than a SWAG (scientific wild *** guess.)

Hope this helps....

Hey Charles. How in the world did you get to dave!!!

I would say just keep grinding and building experience. There's always some puffing with numbers in most circles as people are trying to predict the market. I would say keep hitting up your local REAs and learn from those that are active in the areas you are looking for. In my short experience, realtors are usually much better with providing comps than wholesalers. But just keep at it and you'll eventually find good people with a common goal to work with.

Originally posted by @Charles Creasman :

Hello all! First name's Charles but I go by Dave! I've been having trouble finding my first house to flip! The wholesale deals I get have too optimistic ARVs or need way too much work to make a decent ROI. Hoping to learn what I'm doing wrong here.

Also here to meet other Atlanta investors to network with!

 Hello and welcome!  I am 59 years old and I am still learning from BP.  Just always do you numbers and feel good about the deal before you make an offer. Location is probably number one.  Just be patient and you will do better.  Fix and flip is a good way to go you just need to have good numbers so you might to inest in a calculator from BP.  Educate all you can and know your market.  I graduated from college and I got a broker license in 1980.  Regardless of getting a business degree I felt more comfortable in the construction business. Circle you think I might be any help to you please contact me at any time.  Good luck!

Welcome Dave. I'm not too far away in Acworth. You're right, in can be tough to find deals in our area, but they are out there. Send me a message and tell me the parameters for what you are looking for and I will stay on the lookout for you. BP is a great place to connect and ask questions, so you have come to the right place. Good luck.

Hello Charles. I just stumbled on this post and thought I'd interject, as many in the investment community will offer advice that doesn't necessarily pertain to the Atlanta market. Rafael was right, an experienced real estate agent will be able to better advise you on as-is and full retail market value. However if you're flipping, accurately determining ARV's is crucial in the Metro Atlanta market. It may not be as crucial in a "macro" market like Las Vegas, where blanket values, or the same values can be determined for most homes based on whether they're located north, south, east, and west of downtown Vegas. However, Metro Atlanta is a "micro" market. You can be looking at a home in a subdivision in Acworth or Kennesaw for example, that carries an average home sales value of $150,000, and have a subdivision right next to this one that is valued over $500,000. And although I agree with value assessments being mere opinion, just like appraisals, you absolutely must make determinations of what price you're likely going to flip the house for. There are many determining factors and indicators in this market that will allow you to narrow down a solid price point that is reliable based on market activity - I do it every day for investors, investment companies, and lenders throughout the country that need Metro Atlanta home assessments. Please feel free to contact me if you wish to discuss further.

Ok, my 2 cents. Spend time becoming and expert in the area you want to focus on. You absolutely GOTTA know sale prices, rentals, etc. As said above, prices could vary from street to street. Knowing your numbers will give you the confidence to move forward when you DO find the deal.

Thanks for clarifying Charles, and agreed. Paul Kelly certainly knows something about it. I'm originally from Los Angeles myself and value assessments don't get any more micro and complex than LA, that's a fact. Parker Styles gives a very important warning that all new investors should be savvy to.

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