How Are you Calculating your Wholesale Deals?

What's up investors!?!?! I know it's been a long time since my last blog. In the past couple of months, my team and I have been trying to get deals closed and create different ways to find inventory and we hit it big! 

The reason for my question in the title is because in the past couple of months, I was seeing that the normal wholesale calculations aren't working. Depending on which state you are in it may very but for Nevada it is: 

ARV x .75 minus rehab fees and assignment. 

With that calculation, we were able to close roughly 3-5 deals per month. However, in the past couple of months we have been getting a lot of push back from sellers about the price and no matter what explanation we gave, they were selling to other buyers that were offering more than we were. After doing some research on a few deals that we lost to other buyers, we started to see that investors will still able to close on deals but would have to come up in price. 

After speaking to a few of our buyers we then found out that they are willing to pay a little more since for the property since this change has kicked in. With this new information, we changed our percentages and now in the process of closing 4 deals this month alone. 

Are you having problems with closing the seller on price? It might be for this reason. Remember to always stay in education mode and look for slight changes. Had we not had a 10 minute conversation with our buyers, we would still be stuck on our same numbers and probably out of business soon. 

Happy Investing, 

Louis Davis