Help! Wholesale analysis

[Edward Emerson]

Hello!

I am new to the wholesale scene and I'm trying to learn as much as I possibly can. I'm starting off in the Houston market and was wondering what percentage is best that I should use when analyzing a deal. I have watched some videos and I'm hearing 50 percent, some say 65 percent, and even 70. And with that being said please feel free to drop any other valuable information or jewels that you think may be beneficial when analyzing, determining ARV etc. I would greatly appreciate it.

[Jerryll Noorden]

Originally posted by @Lydia R.:

@Jerryll Noorden Im curious about how you evaluate a deal and determine what to offer the seller. How do you know what the most you can pay is? What is your process of evaluating a deal that you intend to wholesale?

Good question.

I figure out the ARV. I have my agent walk the place when it is a really good deal, or a very difficult deal.

I then figure out what all the other houses on the market look like. Do they have granite, do they have central air, etc. etc.

I  figure out the minimum that needs to be done.

Then I figure out what a buy and hold investor would do. So then I have 2 costs of repairs.

Then I study the house. Is this more like a buy and hold house? Or  is this a flip house.

In areas where there only are SFH, in good areas, this will most likely be a flip. In areas where there are run down houses, or if it is a multi family house, it is most likely a B&H house.

Based on these decisions we will make it a flip house with a flip offer or a B&H house with a B&H offer.

If you do not, you WILL loose a lot of deals because someone WILL outbid you!

You have to be hands on. This is why I cringe every time I see some investor mention the 70% rule.

My question is, how many deals to those that use the 70% rule make? I am genuinely curious (not being sarcastic)