Omaha NE first deal wholesale questions

5 Replies

Hi. I live in Omaha, NE and am beginning my new journey wholesaling, with the intention of doing full flips eventually. I'm very new at this, and for motivational reasons I am kind of just going through the motions and learning as I go along. I am working on my first deal. The house is in a great location, and it can be lived in as is, although it needs a ton of work. It has a solid foundation, and the houses next to it are nice (well kept). It's next to a park as well. It has 2 actual bedrooms and one bath, and a weird upstairs loft area with giant closets. Newer furnace/water heater, etc. The asking price is 75k, and the estimated ARV is about 85k. I have excellent local contractors to do the work as well, and estimated repairs are around 15-20k keeping it on the lower to medium end. The former owner had rented it for 7 years, so it is a great generator. If i were in a better place financially this would be my dream flip to rent out. I'm trying to get it under contrac for 45- 50k. I also have an excellent title company. Any words of wisdom for my first deal? (Please be nice lol, I am a sleep deprived, working, single mom going to school and have no family living nearby to help with anything, so sometimes my brain doesn't work well). Also, I have read about certain investors who prefer to throw the wholesaler a finders fee rather than putting it under contract. I am very open to that, but unsure how to find those people. The deal is hot and I am acting fast, so I am learning quickly and just putting out feelers for loving, gentle advice.

Any advice or pointers are appreciated! Thanks! 

-Kendra 

Hi Kendra, not sure I have any "words of wisdom" for you but I would say to try and focus on one thing at a time. Wholesaling is actually a super simple business but can become overwhelming if you try and do everything all at once. The first step is to get the contract signed so I would focus on that. For your purchase price, I would try and be around 70% of ARV, minus repairs. Or in your case $85k * 0.7 -$20K = $39.5k. Everyone is hunting for a good deal, get it and you won't have to worry about anything else :).

Originally posted by @Josh Miller :

Hi Kendra, not sure I have any "words of wisdom" for you but I would say to try and focus on one thing at a time. Wholesaling is actually a super simple business but can become overwhelming if you try and do everything all at once. The first step is to get the contract signed so I would focus on that. For your purchase price, I would try and be around 70% of ARV, minus repairs. Or in your case $85k * 0.7 -$20K = $39.5k. Everyone is hunting for a good deal, get it and you won't have to worry about anything else :).

Thank you so very much! That's actually super helpful! I learn best by doing, and this is such a fun experience. I had a weird formula I was trying to use that wasn't adding up. Your "70% of ARV" makes it way easier for me to figure out. I appreciate all of your advice. I do tend to try to do everything at once. I think a lifelong lesson of mine is to slow down, breathe, trust the process, and take it one step at a time. In many areas of my life none of those things are possible lol, but this one is. Thank you!