Hi, I am debating wether to focus my marketing onto Detroit at the moment. The ARV in the area is lower around 100k so my concern is that if I get a wholesale deal in Detroit my profit margins will be much lower due to the already low price of housing in this market. I could get at maximum a 10k contract in Detroit but in Georgia I am able to get 20-30k assignment fee's as the average ARV is higher so there is more wiggle room for negotiations.
Wondering if anyone has experienced this and if lower ARV areas = lower assignment fee's per contract
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
You should focus on areas that you are within an hour drive from. Wholesalers who wholesale in markets they are not familiar with get their ARV, rehab, and numbers off. Single family is not just a numbers game where you can use propstream to determine ARV and price per sqft to estimate rehab.