Estimating Repair Costs & Fixed Costs

[Devoneer Villeta]

Hello everyone, so I'm new to biggerpockets and real estate as a whole. I plan on getting my license as a real estate agent in the near future but for the past year I've been learning everything I can about wholesaling as this is how I plan to start my real estate career in the mean time. I have a good understanding of everything except for the following; ARV, repair costs, and fixed costs. As a wholesaler, I know that in order to sell a property to a buyer I must determine the MAO (maximum allowance offer) for a house. Below is the formula that I plan on using:

MAO = ARV - Repairs - Fixed Costs - Profit - Wholesale Fee

What I need is someone who is willing to show me exactly how to estimate ARV, repair costs, and fixed costs so that I can accurately determine the price for both the buyer and seller. If you'd be willing to help me, I would appreciate it and please let me know what I can do for you in return. Again, this is what I need to learn:

• The Flipper’s Profit (how much the flipper wants to make on the flip)
• Repair Costs (how much it costs to fix up)
• Fixed Costs (how much the deal is going to cost the flipper, including holding costs and transaction costs on both sides of the deal)

[Brad Bellstedt]

Sounds like a plan! We have study sessions on Wednesdays for test prep and our office doesn't charge any monthly fees for hanging your license with us. If you have any questions along the way, feel free to reach out!