First Wholesale Deal Question

2 Replies

Hi, I am a new to Real Estate Investing and wish to get into Wholesaling to start out. 

I am located in Toronto, Ontario, Canada. 

How do I know which properties are worth giving an offer for? What kind of offer should I be making to secure profits between $1000-$5000? 

Thank you

Originally posted by @Ahsun Lee :

Hi, I am a new to Real Estate Investing and wish to get into Wholesaling to start out. 

I am located in Toronto, Ontario, Canada. 

How do I know which properties are worth giving an offer for? What kind of offer should I be making to secure profits between $1000-$5000? 

Thank you

 This is a loaded question because there are many factors involved. You your search Bigger Pockets there is a blog post The Ultimate Guide To Getting Started As a Wholesaler or something similar. This would be a good place to start

To find out if a property is a good deal you have to find out what similar homes in the area are selling for, then work backwards and deduct the minimum profit an end buyer would want to make, holding and reselling expenses, rehab cost, closing cost and then finally what you would like to make. The final number will be your max offer price. When you go to negotiate start at least $10k cheaper. Make sure the asking price is close to that max offer price so you don't upset the seller with an extremely low ball offer and waste each other's time. This is for a property to flip of course. Buy and hold properties are a little different.

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