Investor · Scottsdale, AZ · Member since 2011 · 509 posts · 134 votes
Happy Easter BP Fam!
I run an extensive phoenix based wholesale company, but we're doing deals all over North America. Now, we've partnered up with a very successful marketing company who has built out our landing page for every city in the US. They're pumping so much juice into this webpage, we're getting thousands of leads a month from virtually every corner of the US.
We're in NEED of markets EXPERTS, wholesalers, and investors for every metro city in the US, except Phoenix. Someone we can rely on for comps, seller negotiations, selling deals, ect. If we get a lead that is a deal(I won't waste your time), I want to be able to pick up the phone, discuss a strategy, and execute the strategy.
You can be a wholesler, fix/flip, buyer, it doesnt matter. We just need someone who's dependable and willing to make money along side us.
If this is something you're interested in, or want more info, please shoot me a PM or Email with your full contact info, and your service area.
Investor · O Fallon, MO · Member since 2016 · 71 posts · 18 votes
10y
You need to connect with Ruben Perez at Skyline properties in Phoenix. He's got a great network and can help you move any or all of those deals. PM me for his contact info.
Would love to connect with you and the webpage movement sounds amazing ! I am local wholesaler. currently living in Greer SC but work both NC/SC markets. Lets connect would love to see what you and your team have in the Queen city for us.
Investor · LOUISVILLE, KY · Member since 2013 · 299 posts · 137 votes
10y
@Jared Vidales I am interested in any leads you have for the Southern Indiana / Louisville area.
Also, @Marina Sud is a very active wholesaler for the area. If I am unable to buy, or the deal doesn't fit my criteria, she probably can find a buyer for you.
Regarding my criteria for deals (this was originally written for a couple of wholesalers in the area. I didn't write it just now for this post. But, it applies, so here goes):
I use similar square footage (within 10%, or as close as the comps allow), same BR, BA and garage. For comps, I will also use houses built around the same time-frame (before 1970, I consider all houses the same time-frame. After 1970, they must be within 10 years of each other). The comps must be SOLDS (not pendings) within last 180 days. The comps must be within 1/2 mile of subject property. If there are no solds within 1/2 mile, I will go out 1 mile, but it's a rare case.
I am looking for both rehabs and buy-and-holds. My criteria are different for both. I will outline the rehabs first.
For rehabs, I'm looking for 3 BR or more in Clark or Floyd County, IN. I don't want any houses with foundation issues. Any other issues are fine (mold, water, termites, roof replacement, HVAC replacement. Not much scares me). I am looking for houses that are for sale for between $5,000 and $85,000.
Here is the formula I use when I purchase, so whatever you make under that is gravy for you.
ARV (I don't average. I usually use the highest number of the comps if it makes sense; same neighborhood,etc.) minus
30% (for example, if ARV is 100K, I multiply this by .7 to come up with 70K. This is where I build my profit).
Rehab cost (this is also pretty important for you to get accurately. I'm also going to end up doing an inspection before I put it under contract with you. This is the part that can really mess up the deal. Not sure what your process is for this, but I recommend contacting a contractor to get pricing (unless you're one). This should give you a relatively good estimate).
Holding cost (for 6 months). (I base holding cost on PURCHASE price, which is only an estimate at this point. So, if my purchase price is 40K, I take 1.2% of that and multiply it by 6 months. This is my holding cost. In this instance, holding cost would be 480 per month * 6 months = 2880 (I'll round up to 3,000 to keep it easy).
Closing costs and commissions on backside. Though I normally pay buyers closing cost when selling, I don't automatically factor for that (which is good for you). Here's how I do commissions and closing costs. I take the ARV and multiply it by .08. Whatever that number is, I subtract from the ARV price. (In this example, 100K - .08 = 8,000).
So, to recap (and to frame it in one formula), here it is.
So, walking through a house with an ARV of 100,000 (for ease), here is the house put through the formula to come up with MY max bid.
Max BID = (100,000*.7) - rehab - (purchase price (estimate at this point (let's say 40K) *.012)*6) - (100000*.08)
Max BID = 70000 - 20000 (made up number) - 3000 - 8000
Max BID = $39,000
$39000 is MY max bid. For you to make a profit, you need to lock it up under that amount. (I'm assuming you already know that, but just in case. I don't know how experienced you are or aren't).
Ok. My holding/rental criteria is slightly different. First, I'm ok with 2 BR or above. Class C or above. I'm also ok with multifamilies.
I have slightly less stringent criteria for these, because I'm not interested in purchasing a hold property up-front that requires rehab. However, I'm only interested in properties that I can purchase for 75% of ARV. Same comp criteria as above.
My other determining factor will be based on average market rent in the area (neighborhood). The GRM needs to be at least 10%. I actively look for wholesale properties to hold that I can get a GRM of 20-25%, so 10% isn't a great deal to me, but I will look at it.
Vendor · Bonney Lake, WA · Member since 2016 · 48 posts · 12 votes
10y
Hello BP!
@Jared Vidales: Hey Jared...congrats on your successful sales & marketing plan!
Our Phoenix office has a very strong & experienced staff that specializes in working with investors and their needs. If you would like additional information please get a hold of me...I'd be happy to discuss your servicing needs and how we could help you. Thanks!
