Need Advice..Wholesale Deal, 1 acre in scottsdale is not moving..

5 Replies


I have been investing in real estate for a few years now (rehabs, buy & Hold), I've focused on wholesale for the last year and I'm always looking to learn, needless to say I'm very grateful to the information and the resources available here, with that being said...

SCENARIO: I have a contract on a horse property in the middle of scottsdale, AZ it currently has a 1500 SFR and the lot is .85 acres. I'm doing an assignment for 399k given the dimensions of the SFR, the size of the lot and the property values in the area there are very limited comps, current ARV is 500k+ it needs 10 to 15k for a basic cosmetic rehab, however the updated properties around the area have sold for 700+ so the potential for profit is there...

ISSUE: I've reduced the original price and a few investors have gone by but the main thing that comes up is the exposure to a popular street (for the locals, It's on the corner of Shea Blvd and 61st St). I must admit I thought it would go quick but it has not and I only have 5 days left to close on it. Owners are fixed on the price and I have already reduced my fee. any suggestions? I'm a lifelong learner and always looking to improve, there might be something I'm overlooking. Any advice would be appreciated.

Hi Rafael,

I tried to call you but it sounds like a fax #... 

@Rafael Cortez  So location location location isn't good? hmmm that's a huge selling point. looks like you may have to walk away. Have you tried co-wholesaling it? Asking around to other wholesalers in your market to bring a buyer to the table for a split of the wholesalers yield. Sorry I couldn't be more helpful but if the location is bad the owner is going to have to get more motivated or its going to sit unsold for a while, imo. If you have room lower the price some more. Offer a discount(flat rate or percentage) to the jv'ing wholesaler's cashbuyer who closes the soonest.



Thank you for your input Mary, that's what surprises me, this is a very desirable neighborhood and the pricing is about 76% of ARV so there is good margin... I do work with other wholesalers and have forwarded the info. I'll keep in mind the flat rate and discount part, maybe the incentive will help the deal flow.



I assume that "popular" means "busy" in this context.  This property is on a busy street.  Are the comps on the same busy street?  If not, they're not good comps.  A busy street is a significant, incurable defect and will reduce the value of a property.  The only good comps are ones on that same busy street or other similar streets.   

If you cannot find such comps you may be able to estimate a discount factor by finding other pairs of properties.  The pairs should be similar properties except that one is on the busy street and one's not.

Does that 76% of ARV include rehab? 76% is not a very attractive number. Assuming that includes the rehab the profit potential is only about 7% of ARV.

Hello John, Thank you for your reply, yes two of the comps are on the same street and a third is on a similar street 1 mile south and with frontage on them as well, but with this in mind what would you consider an adequate discount for a busy street property If I were not able to find any recent sale comps (I keep the comps within sales of last 3 months, 200 to 300 sq ft of the subject property and like built properties). 

Thank you.

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