All Forum Posts by: Christopher Salazar

That sounds pretty good and very similar to a deal I did a couple weeks ago. I think that's a solid offer and should be a good deal. It's always good to give a little cushion on the repair costs as well. Lock it up and get a deal! Good luck

Hi Cynthia, she probably wants to make a small profit on the deal if she owes 92K. You are definitely on the right track with your offer. Depending on how tight your market is, you may be able to slightly break the 70% Rule because it's nothing set in stone - just a good measuring stick. 

I would just make the you're pulling comps sold in the last three months, and I would pull between 3-6. If the 158K is the correct ARV, you should have a solid deal at 95K and she will still receive some type of profit. Hope this helps. Good luck!

I have done several wholesale deals and am always looking for mentors or experienced investors to start a mutually beneficial relationship with. Also, if you ever have any wholesale questions, feel free to reach out to me. I'm sure we can help each other out. 

The typical rule for making your offer is the 70% Rule. 

70% x After Repair Value

Less: Repair Cost

Less: Wholesale Fee (usually factor at least 10K so you have some wiggle room when negotiating)

=MAO (max allowable offer)

I'm not too sure but I've heard a way to speak to rent-to-own investors, match up a buyer for their property, and somehow get compensated for that. I'm not sure how that would work, or how hard it would be for these investors to already find tenant-buyers very easily. I imagine in a lot of areas it would be pretty easy. But, there could be potential there. 

The best case there is you present the potential deal to a buyer and convince them to put the earnest money down. If it's truly a good deal, a buyer would definitely do this. Always put the earnest money with your attorney. 

Absolutely pursue it! Any lead where you see potential motivation - jump on (if it fits your buyer's criteria or you know it's a desirable location). Hopefully, the owner will give you a call and if he's not interested in selling now, keep following up!

That's definitely interesting. Unless you already have a niche buyer in mind, it may be hard to assign that property because it's unusual. Also, it would be difficult to find comps to figure the ARV.

My advice for the future: build relationships with your buyers, see what they're looking for, and lock up a deal that meets their criteria. 

Before you start marketing, you should know what area you want to "farm". When I started, it was the area around my college I was most familiar with. Next, create a budget for the next six months so you can sustain a marketing campaign and follow up with multiple mailings per list. The money is in the follow up! If you need any help, just shoot me a DM. 

I know that you should definitely have whatever fee you're paying the wholesaler on the assignment contract - not what you'll be in on the property altogether. 

Also, as Jeff said, make sure you understand the terms of the purchase agreement before you sign an assignment contract. Protect yourself by having your attorney check it out as well.