Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
3y
If you meant how to know if the property would be a good deal for your investor/end buyer. That depends on your pool of buyers and their exit strategy. If you don't have a pool of buyers yet I would say a good deal to find a buyer fast would be offering a property at 70-75% ARV - Repairs.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
3y
That is a very broad question so you'll get broad answers. The simple answer is it depends. How is the area? If you are wholesaling I would stay away from rough areas. They can sell but harder to move. Target B-A areas. They are always desired and are needed. Also how much rehab does it need and how long will it take to complete? Many wholesalers underestimate rehab and wonder why the deal won't sell. I would recommend to look at the market you will be in. See what areas are hot and what are they selling for. Also learn rehabs. If you don't study, do your research you will spin your wheels and won't close any deals. If you need to JV or partner with a larger company do it. Then branch off.
Real Estate Agent · North Augusta, SC · Member since 2017 · 254 posts · 233 votes
3y
I agree with Caleb that the question is a bit broad. I thought you were asking as a buyer. :)
I agree with sticking to A-B areas as there's more desire for those (buyers, renters). Learn how to estimate rehab costs for your areas. I'd walk other wholesalers' properties, let folks know you're there to learn and ask what they think certain things would cost. It will help you start to get an idea and be a bit better with rehab costs. :)
Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
3y
If you meant how to know if the property would be a good deal for your investor/end buyer. That depends on your pool of buyers and their exit strategy. If you don't have a pool of buyers yet I would say a good deal to find a buyer fast would be offering a property at 70-75% ARV - Repairs.
If you meant how to know if the property would be a good deal for your investor/end buyer. That depends on your pool of buyers and their exit strategy. If you don't have a pool of buyers yet I would say a good deal to find a buyer fast would be offering a property at 70-75% ARV - Repairs.
If you meant how to know if the property would be a good deal for your investor/end buyer. That depends on your pool of buyers and their exit strategy. If you don't have a pool of buyers yet I would say a good deal to find a buyer fast would be offering a property at 70-75% ARV - Repairs.
When you say “70-75% ARV - repairs” what do you mean by that, im guessing you mean offer a property at 70-75% discount? Im unsure of what that means.
If you meant how to know if the property would be a good deal for your investor/end buyer. That depends on your pool of buyers and their exit strategy. If you don't have a pool of buyers yet I would say a good deal to find a buyer fast would be offering a property at 70-75% ARV - Repairs.
When you say “70-75% ARV - repairs” what do you mean by that, im guessing you mean offer a property at 70-75% discount? Im unsure of what that means.
ARV=After Repair Value
To calculate ARV on a property look for sales comparables in the area to determine how much that property will be worth after rehabbing it.
Example: If your ARV is 200k, and the property needs about 50k of work, you would want to get the property under contract for 70-75% ARV= 140-150k minus rehab of 50k= 90-100k minus your assignment fee of 15k= 75-85k. So your first offer should be 75k and your MAO (maximum allowed offer) should be 85k unless you want to reduce your assignment fee.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
You can not generalize a good deal. A good deal to me may not be a good deal to another investor. Build your buyers list and have conversations on what their criteria is.