Wholesaling in a hot market

10 Replies

Hi everyone,

I have a general newbie question about wholesaling or finding deals in a hot market. I know that the general (ARV x .70 less repairs) formula doesn't necessarily work in a hot selling market like Denver or any hot market for that matter.

With that being the case, do investors adjust what they consider deals in their area? I hear that as long as people get at least 80% off of market value of a house in a hot market that is a deal to them. Does anyone have any thoughts about numbers in a fast selling market? Thanks for reading!

If the market is hot enough, you can wholesale to Retail buyers at 100%+ ARV. And, you can drop the A and the R from that. I've seen it. Supply and Demand Rule.

Yes.  Retail buyers are non-investors.  I was just trying to say that the answer to your question is yes.  Think about it.  IF and investor knows an owner-occupant will pay 110%, do you think they would pay 80%. . . 90%?  Whatever the market will bare is what they will pay.

NP

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Originally posted by @Michael Gee :
Hi everyone,
I have a general newbie question about wholesaling or finding deals in a hot market. I know that the general (ARV x .70 less repairs) formula doesn't necessarily work in a hot selling market like Denver or any hot market for that matter.

With that being the case, do investors adjust what they consider deals in their area? I hear that as long as people get at least 80% off of market value of a house in a hot market that is a deal to them. Does anyone have any thoughts about numbers in a fast selling market? Thanks for reading!

It varies by location, but yes, deals are a little tighter right now. I wouldnt say at all for me 80% of ARV is a deal I'd do even in this market, we are pretty consistently finding 70% minus repairs (landing around 50-60% of ARV OR at least a 75k spread not including repairs.

Medium anson blue2 copyAnson Young, Anson Property Group | 303‑475‑9999 | CO Agent # 14161n | Podcast Guest on Show #235

Thanks for the info @Anson Young

For the buy n holders who are just looking for a rental property, would the numbers be adjusted?

Originally posted by @Michael Gee :
Thanks for the info Anson Young
For the buy n holders who are just looking for a rental property, would the numbers be adjusted?

Most likely, the guys I know anyways. Depends on their formula for purchasing, some are sitting on the sidelines right now because houses arent meeting their criteria and they wont budge. Some have budged their forumlas and are still buying... so it varies from investor to investor.

Medium anson blue2 copyAnson Young, Anson Property Group | 303‑475‑9999 | CO Agent # 14161n | Podcast Guest on Show #235