Flipping properties purchased wholesale

[Devin Bost]

I've considered flipping a property purchased from a wholesaler, but I'm concerned about the margin. I've heard some folks run into issues with the margin getting eaten up by repairs, and they end up losing their investments. Does anyone here have experience with purchasing properties from wholesalers? If so, could you please share your thoughts about how to succeed?

[Kevin M Finley]

I've purchased from wholesalers quite a few times but DO NOT TRUST THEIR NUMBERS. 

I buy when they miss. Here's a few examples:

1. Proposal: $72,000 buy. $20,000 rehab. $130k ARV. Actual:$72,00 buy. $82,500 repairs. $225k sale price.

2. Proposal: $82,000 buy. $15,000 rehab. $119k ARV. Actual: $82,000 buy. $40,000 repairs. $172k sale price.

3. Proposal: $30,000 buy. $20,000 rehab. $78k ARV. Actual: $30,000 buy. $28,500 repairs. $102k sale price.

4. Proposal: $95,000 buy. $25,000 rehab. $149k ARV. Actual: $96,000 buy. $5000 repairs. Rented at $1650/mo.

If a wholesalers numbers are absolutely correct, you will maybe make money. Look for the misses. Jump on the misses.