Updated about 16 years ago on . Most recent reply
Understanding a deal
Hello BP Fam,
I want to start out investing by doing wholesales. I have read the wholesaling forum and read the posts about what formulas to use to see if you have a deal to assign. I partially understand the numbers but i want to make sure. From my understanding, I will use the general formula 70% of ARV-repairs-assignment fee= Maximum Offer, unless my investors say otherwise. Now if i use 100,000 ARV, would it go this way
70,000 - 10,000(repairs) - 5,000(assignment fee)= $55,000
Do i include a certain amount for closing costs or other costs that i don't know about?
Do i offer $50,000 to the seller and the $55,000 to my investor?
If i don't have it correct please let me know with this same example and please include what to offer to the seller and investor. Also when i contact potential buyers for my list, do i tell them that i'm a NEWBIE wholesaler and i was wondering if they looking for more rentals, rehabs, etc? Thanks guys