So I have people who look out for properties that I could wholesale. They get a $500 cut so the incentive is pretty high for them to refer them to me. They don't understand how wholesaling works so they aren't competition.
Anyway I was recommended this property: http://www.zillow.com/homedetails/231-County-Road-...
It's on Zillow though.. I have an investor who wants properties under $150k that need light repair. Apparently this person (I have his contacts, have not contacted him) has been trying to sell the property since June this year and is 'really itching to get rid of it'. How should I approach this? I have not done any wholesale deals before, this is the first time I've got my feet wet in investing. Thanks so much!
@Jacob Dame Atart with running an analysis of like homes near that home... How much do they sell for/ these are the 'comps.' What's it 'worth' to you ? What will your investor pay and does he want it?
I'm a wholesale investor from Texas, I'm still new when it comes to others but The first thing I do on a possible prospect is get a little due dilligence done on the area and get some comps that way I can determine the ARV and know how much to offer when I contact the seller. You never want to over pay for a property because finding an end buyer to sell it too will be a needle in a hay stack (with no needle)
Dang, you beat me to it Nick haha
Yes, that is a part of my due diligence I will need to do, I was just wondering if I could even consider wholesaling a property that's listed on Zillow. I just think it isn't really wholesaling at that point right? Would any investor want to do a deal listed on Zillow? What if this investor realized it's listed on Zillow would they back out? (I would have it under my name at that point I guess since its FSBO). Noob questions! So frustrating I'm ready to get some experience under my belt.
Also the investor I spoke to said he was looking for under $150k but $100k is not a number I hear from wholesalers here on the site seems high. Standard formula would say 70% ARV - repair costs is highest price to offer.
$100K is only considered high if the house has a low ARV like $130K for example. but if the ARV is around let's say $200K and the house needed $20K in repairs, that would put your MAO at $120K...all of a sudden $100K looks pretty good...It all depends on what your ARV turns out to be
Good point, the ARV is $100,000 though, and he's pricing it higher. I'm going to talk to a close friend who's a developer and who recently got his Realtor license. He'll have good advice, and hopefully I can be an unlicensed assistant to get access to the MLS.
Idk what the repairs are, seems I need to get in contact with some people tomorrow.
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