Investor · San Antonio, TX · Member since 2012 · 596 posts · 587 votes
10y
Since we don't have a subject property to go off of, we can look at current wholesale market percentages and give you a ballpark based on theoretical numbers. Over the past 6 months in San Antonio I have seen wholesale deals sell at about 74% to 80% of ARV (minus) Repairs. The variance in percentage has to do with a combination of several factors. Typically wholesale deals that make good rentals, will have a higher percentage (approaching 80%). 77% to 80% is commonly seen from the "big box" wholesalers in town for their rental inventory. I have also seen these percentages applied to highly desirable areas (NW, NC, Far North, & Historic Areas) as well to higher priced flip properties with larger potential net profit.
The vast majority of wholesale flip deals I see are put out at 74% to 78%, variances based on location of property, desirability, whether it's a small-time wholesaler or a large organization (i.e. experience and/or size of buyer pool), and potential net profit.
A simple scenario ex is: Subject Property = 123 Main St. (Flip) ARV = $175K Repairs = $45K Wholesale Price = $84.5K (approx 74% deal
On paper this looks to be both good deal percentage-wise and from net profit-wise (before considering carrying costs, resale costs, etc.).
Don't forget when running your numbers to add in your fee! I typically see fees from $3K to $10K for proeprties under $100K purchase price, and $10K or more for properties over $100K purchase price. There is not set rule or amount. The key is to not be greedy, but don't leave too much money on the table either. It may take you a while to find a balance, but a good wholesaler is worth their weight in gold (literally).
The most important thing is to make sure your numbers are good! Many wholesalers fudge on the ARV or lower the rehab budget in order to make a deal work or maximize their fee. Anyone that has wholesaled before has been guilty of this. It happens. Make sure that you don't make it a habit. If you get a reputation for over-priced properties, low rehabs, and/or inflated ARVs, your properties will sit.
Wholesaler · San Antonio, TX · Member since 2015 · 16 posts · 14 votes
10y
Depends on what area of town you mailed to. We have zip codes that are as high as $500k on average to $25k. If you need help, you are welcome to contact me. I already have a buyers list here in town. Hope your Holidays are great.
Investor · San Antonio, TX · Member since 2012 · 596 posts · 587 votes
10y
Since we don't have a subject property to go off of, we can look at current wholesale market percentages and give you a ballpark based on theoretical numbers. Over the past 6 months in San Antonio I have seen wholesale deals sell at about 74% to 80% of ARV (minus) Repairs. The variance in percentage has to do with a combination of several factors. Typically wholesale deals that make good rentals, will have a higher percentage (approaching 80%). 77% to 80% is commonly seen from the "big box" wholesalers in town for their rental inventory. I have also seen these percentages applied to highly desirable areas (NW, NC, Far North, & Historic Areas) as well to higher priced flip properties with larger potential net profit.
The vast majority of wholesale flip deals I see are put out at 74% to 78%, variances based on location of property, desirability, whether it's a small-time wholesaler or a large organization (i.e. experience and/or size of buyer pool), and potential net profit.
A simple scenario ex is: Subject Property = 123 Main St. (Flip) ARV = $175K Repairs = $45K Wholesale Price = $84.5K (approx 74% deal
On paper this looks to be both good deal percentage-wise and from net profit-wise (before considering carrying costs, resale costs, etc.).
Don't forget when running your numbers to add in your fee! I typically see fees from $3K to $10K for proeprties under $100K purchase price, and $10K or more for properties over $100K purchase price. There is not set rule or amount. The key is to not be greedy, but don't leave too much money on the table either. It may take you a while to find a balance, but a good wholesaler is worth their weight in gold (literally).
The most important thing is to make sure your numbers are good! Many wholesalers fudge on the ARV or lower the rehab budget in order to make a deal work or maximize their fee. Anyone that has wholesaled before has been guilty of this. It happens. Make sure that you don't make it a habit. If you get a reputation for over-priced properties, low rehabs, and/or inflated ARVs, your properties will sit.
San Antonio, TX · Member since 2015 · 125 posts · 102 votes
10y
Hey wholesalers... Add me to your buyer lists. I bought 4 properties in the last year alone and some in cash. Trying to grow my buy & hold business aggressively. Predominantly 100k+ deals. Let me know. :)