How do I know if I have deal?

[Kevin Sillah]

Hello,

I'm a relatively new investor and I've been aware of the Wholesale Process for quite awhile, but I've recently decided to take the plunge and go all in on Being a Wholesaler and I'm doing my Due diligence on a particular On-Market Property and I would just like some feedback to see if I have a Deal on my hands or not. I've based my numbers around the standard ARV for the Dallas Market.

Would someone be able to run these numbers for me to see what the margin is for any profit to be made, if I was to get the property under contract and wholesale to a buyer.

ARV: $176,000

Estimated Rehab: $42,500 (Heavy Rehab)

MAO: $72,700

This offer is based on the comps I've done of the surrounding area.

 Here is the Link to the Property; 3910 Atlanta St, Dallas, TX 75215

I appreciate any help on this in advance!

Thank You. 

[Jerryll Noorden]

The rehab is not $42K

Not sure about numbers in Dallas but if this was in CT:

You need a new roof, ($6K - $12K)

New appliances ($2K-$3.5K)

Exterior Powerwash ($500-$2K)

Exterior Paint ($3K - $5K)

Flooring ($6 * Sqft= $6K) Does not include labor (assuming the area justifies hardwood floors

1Bath = $5K - $7K

Windows ($200 - $400)/window not including installation

doors, interior paint, Trim work,

New Kitchen ($10K-$17K)

This to me looks like at least a $70K rehab, and that is if there are no surprises.

Also, 2 beds 1 bath are bad deals. No one wants 2 beds. At least a 3 bed!

Now, all this is to just FIX what is bad. This doesn't include a redesign (open floorplan etc. etc.)

Then also dealing with electrical and plumbing,  permits.

This is not a deal my friend,

I would offer no more than $20K for that... IF the ARV was indeed $170K

Hope that helps

[Wayne Brooks]

@Kevin Sillah One important, basic, fact you need to understand....if it’s on the mls, all the Rehabber have already seen it, and passed.

[Joseph P Davis]

3131 McDermott Ave, Dallas, TX 75215

or you could buy this for 95K save 35K

I really do not like 2BD houses I go for 3BD at least

New roof and all these repairs are going to be expensive and cost a lot right now

My 2 cents is walk away

[Kevin Sillah]

Thanks for the feedback. All the info I've been given is definitely helpful and helping me determine which direction to go in. I was shooting a very low estimate on the rehab but based on Materials and Comps I'll take that into account about acquiring on Market Properties.

[Steve Milford]

@Kevin Sillah 1) Projecting low rehab costs is a problem of many first-time investors, it doesn't matter if on- or off-market. 2) Wholesaling without a real estate license is illegal in many areas, do you due diligence. 3) The link you offered says this is a cash only deal, that means a close in 2 weeks +/-, and they are probably going to want to see proof of funds. I would anyways. That doesn't allow for much time to pitch to other investors. 4) Multiple offers received already, so probably not going to pick an offer with "subject to" in the buyer line. 5) Aside from all that, if you bought and found yourself holding onto gor whatever reason, is it the best use of your money? I personally wouldn't want something that doesn't cash flow right away or asap.

[Lucia Rushton]

Quote from @Kevin Sillah:

Hello,

I'm a relatively new investor and I've been aware of the Wholesale Process for quite awhile, but I've recently decided to take the plunge and go all in on Being a Wholesaler and I'm doing my Due diligence on a particular On-Market Property and I would just like some feedback to see if I have a Deal on my hands or not. I've based my numbers around the standard ARV for the Dallas Market.

Would someone be able to run these numbers for me to see what the margin is for any profit to be made, if I was to get the property under contract and wholesale to a buyer.

ARV: $176,000

Estimated Rehab: $42,500 (Heavy Rehab)

MAO: $72,700

This offer is based on the comps I've done of the surrounding area.

 Here is the Link to the Property; 3910 Atlanta St, Dallas, TX 75215

I appreciate any help on this in advance!

Thank You. 

 curious where you cam up with $42,500? that is not realistic.