I am Extremely new to this, but a couple of questions.
1. How do you market to motivated sellers, and if you use post cards or letters how do you accumulate the mailing list. How do you know potential areas for motivated sellers, do you use bandit signs?
2. When sellers have foreclosure, liens or mortgage on properties how do you wholesale those, I am assuming most of them are selling for what they owe them for or a little bit over to make some profit?
3. How can I find out what a property is worth so I could make an offer? How to assess the cost of rehab, especially if I dont know what i am doing? Are there any friendly contractors that would help with that?
4. How do you know what equity a property has, since i dont know how to gauge that?
If anyone doesnt mind can they help provide some of the resources they use to get some of these things accomplished.
I am still confused on ARV? Does it really matter to a wholesaler?
Lots of great questions. Not exactly something that can be answered in one post. I would get the Biggerpockets podcast on your phone or Ipod and just start at 1 and listen till you have caught up. You can also use the search function at the top right to find good posts on all of these questions.
Ify, don't over complicate wholesaling. Wholesaling is very simple all you need to know is how to market for sellers that are motivated to sell their homes cheaper than market value.
For direct mail you can go to listsource and pull absentee owners list. If you want to learn how to do that just go to youtube and search.
You can drive around and look for abandoned properties. You can look up their address on HCAD so you can send them letters.
You can also put out bandit signs We Buy Houses CASH with your number. Bandit sings work and they get phone ringing.
To pull comps you can go to zillow, redfin and Har. You can also get a realtor that you are friends with to pull comps for you.
ARV matters because that is the number you have to plug into your wholesale formula. If you do not have the write ARV you cant make the right offer.
Good luck bro
You are right I could be over complicating things but lol. Sometimes you need some sort of guidance on where exactly to start.
Still don't understand arv tho.
ARV is your after repair value of the house based on what is selling in that neighborhood.
For example if we both make an offer to a seller and your ARV is at 100k and mine is at 150k than guess who will have the higher offer price.
ARV x 70% - Repairs - your fee = Offer Price
100 x.70 -20- 10 = 40k < your offer
150 x.70 -20-10 = 75k < my offer
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