Wholesalers - Are they missing the mark?

Question

Blanca Wilson · Answer

Thank you for the insight gentlemen! @Linval T. @Adam B. @Corey Melkonian @Sammy Gallegos

Sammy Gallegos · Answer

Hello Blanca Wilson, As a wholesaler in the Phoenix metro area the question should be directed to your buyers. Typically you will run into three types of buyers. #1 Fix & Flip buyers #2 Rental buyers #3 Speculative Buyers each one of these buyers have a different criteria when buying. Your Fix & Flip buyers will typically pay the least. Rental buyers will pay a little more and your speculative buyers pay the most. Running numbers in todays market is tricky with the prices of properties moving up at an alarming rate. So my advise is to communicate with your buyers on a weekly bases. Know your market and adjust your numbers accordingly.  If you have any questions on running numbers send me a private message and I will be more than happy to help you the best I can.

Thank You

Corey Melkonian · Answer

Great advise Linval I watch the BP webcast as well.

Adam Bartomeo · Answer

I look for factual information. Know what you are selling and where you are selling.

Most wholesalers that I have met over promise and under deliver on all of the numbers. They quote the ARV's too high as well as the rents, they over sell the property. It does nothing but show me that they don't know what they are talking about and that I shouldn't do business with them.

Linval T. · Answer

@Blanca Wilson - Welcome to the BP community.

Good question, but, this boils down to simply determining as a flipper or a landlord if your selling price as a wholesaler will be in line with the profit margin expected to support the physical structure for sale coupled with it's location.

Actually, your timing is perfect, as I just finished watching a video on the use of the wholesale calculator for flip or buy and hold transactions.

This is another well narrated video by @Brandon Turnerthat takes the guess work out of these calculations and you will be able to present factual information to support your price point.

The link is below:

https://www.biggerpockets.com/wholesaling-calculat...