Need a GOOD wholesaler in Clearwater, FL

[Kevin Wiley]

Hey BP family, 

I can't seem to find any good wholesalers in the Tampa /Clearwater/St. Petersburg area. Does anyone know one they can recommend? 

At our REIA meetings they all seem to use a 80 or 90% ARV calculation instead of the 70% that investors need. And they're getting away with it too..

Anyone know of any good wholesalers here? 

[Jon Lee]

Hi @Kevin Wiley...I'm not familiar with your FL market but if it is a strong sellers market there like it in the markets I invest in (Las Vegas & San Diego) then using a 80% ARV calculation is pretty normal. I know 70% is the magic number but in strong markets profit can get squeezed. Also...we have buyers here in the Vegas market that will buy at 90% all day long (buy & hold investors with DEEP pockets). That being said; there are some foolish wholesalers who don't know how to negotiate a deal and settle for smaller discounts but I just ignore those folks. Don't fight it...just know that it's out there. Here are some considerations to take into account:

1) Some markets require an 80% ARV calculation just to stay competitive to get properties under contract. My first few flips required that in 2012 here in Vegas and we did fine and made money.

2) If you are going to change your business model from 70% to 80% (or any percentage you think works); make your business decision, not when seeing a home or reviewing a potential "deal", but on it's own after deliberate thought research.  If you have partners...it's a decision made at a intentional business meeting setting.

3) Start looking for your own properties and get them under contract yourself if you have the time & resources.  There's nothing like negotiating your own discount...the better you are at that, the better of an investor you'll be really.

4) The risk that smaller margins brings can be mitigated by doing more volume (if you are in the position to). You can also mitigate risk by using a combination of private and hard money structured properly...this allows for you to not be limited in the properties you acquired because of hard money LTV limits.

Again...just a few things to take into consideration when trying to navigate a hot market where supply is more limited and discounts are not as deep as everyone would like.  Hop this helps some...best of luck to you!