Need some advice (New wholesaler)

[Jake H.]

Hello everyone, I hope you are all doing well.

I have a few questions regarding some intricacies when it comes to residential wholesaling.

1. I am stuck on understanding the need for putting repair values into the standard 70% formula. What's the purpose if the end buyer is going to get his own estimate? It seems like a waste of time. Would definitely like some clarification.

2. If I need to actually factor in a repair cost to the formula, do I have the end buyer pay for a GC to do an estimate? Or do I do a quick walkthrough and do a generalized estimate based on the three standard levels of rehab (light, medium, heavy)?

3. I've seen a lot of mixed things on here regarding something called "holding costs" and it seems it doesn't apply to traditional wholesaling. Since you are not taking title and have no financial obligations to the legitimate purchase of the property, I'm confused as to how this is even thrown into the formula?

4. I have seen many things stating the 70% ARV isn't really able to be used anymore. I have also heard it does...again it seems like very green people trying to sound like they know everything on these forums some of the time. What exactly is the truth behind this?

I would really appreciate any guidance or clarification on the questions.  

Thanks very much!