First step to wholesale, look up property value?

Question

Would like to start wholesaling, should my first step to look up the property value through county records?

Will Barnard · Answer

First step to wholesaling is getting educated, part of that education is learning how to properly identify exit values which is just as much an art as it is a science.

Start here in this thread https://www.biggerpockets.com/... then continue to educate yourself on estimating rehab costs and exit values, the local market, and the ins and outs of a transaction. Get your real estate license, learn from other agents, attend real estate meet ups, and speak with others in the area doing what you want to do.

Jonathan Greene · Answer

If this is your first potential deal, you do not want to play around with a commercial prospect. You won't be able to do anyone justice trying to figure out commercial wholesaling on the fly. There are way more considerations than with residential and you could cause yourself undue liability by not understanding the ramifications of zoning, business allowances by the town, etc.

Ned Carey · Answer

@Albert Vasquez you don't really "Check the value of a property" It is not like you can just look up the value somewhere.

Estimating what a property is worth is a skill. You look at nearby properties and what they sold for and how they compare in quality and features.  If it is a rental or commercial property you also look at the cash flow and what king of return the property brings.

Then once you know the theoretical value of the property, you also need to evaluate what is worth to another investor. There are formulas and deal evaluators here to help you do that.

Alvin Sylvain · Answer

County records have got nothing to do with "value". You want to look at comparables ("comps"), the prices that similar nearby properties sold for recently.

For example, the county records say my Dad's old house should be "valued" at around $30K or so. Yah, right, in Southern California. You can't find a phone booth for that price today, at least not one with indoor plumbing.

This county records "value" is based on its original sale date back in 1960-something, when my Dad bought it for about $20K-something. (Yah, I still own my Dad's old house. Thanks, Dad, rest in peace.) A similar property down the street sold for about $550K. So which number do you want? $30K? or $550K?

Albert Vasquez · Answer

Thank you will and Jonathan I appreciate it

Albert Vasquez · Answer

Thank you ned

Albert Vasquez · Answer

No problem thanks Roland

Roland Jerez · Answer

@Albert Vasquez. I haven’t really read up on commercial property but what I’ve noticed was NOI and Cap rates kept appearing when determining price/offer. Hopefully, a true expert in this matter can chime in....

Albert Vasquez · Answer

I have a motivated seller, he has a asking price and also mentioned that the property is commercial. I meant to ask how can I check the value of the property?

Jonathan Greene · Answer

Look up the value for what? How are you building a list of potential distressed sellers? What experience do you have in real estate and or on-site negotiations? As others have said, the first step to wholesale is figuring out how to get seller leads. But also, if you don't know how to handle the conversations, it will all be wasted.

First step to wholesale, look up property value?

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