Locking up Deals in California - Which ARV to use?

[Eric Kennedy]

I am building my wholesaling business out of California, the Bay Area to be precise. I know that investor's typically state that they need to buy houses at 60-70% to be able to turn a profit worth their time.

However, I question whether or not this applies in California markets such as San Jose, San Francisco or the Silicon Valley.

Quick example:If the market value of the house is $520K (low end for this area).

60% = $312k

70% = $364K

80% = $416K

That's a $104k range. Also, even at 80% the investor still has over $100k on the bone.

What percentages are all you wholesalers buying at? Does this depend on how badly you need the deal (how robust you lead generation is)?

Thanks,

Eric

[Tim G.]

That deal could sell in the 76-80% ARV range all day to the right buyer.

You'll have a few people who don't like you but thats business.

When a flipper lists a house they don't accept a low offer, they put it out to get the highest price for their product possible. I see no reason a wholesaler shouldn't do the same.

The 70% rule is costing a lot of new wholesalers deals, I've proven it here before.