All Forum Posts by: Jacob Michaels

@Maria Scott email me and I'll send you the wholesale contract I use with good success. It's a 2 pager. 

Most big wholesalers do use the standard TREC though, and just tailor it to what they need. 

@Account Closed I'm interested in hearing about how you invest in the Hawaii market. Can you PM me?

For example:

let's say as-is non renovated houses in that area (with similar square footage and needing similar levels of repairs) have been selling for around $60k. Renovated ones at $100k. Focus on the $60k number--that's your target selling price. Let's say you want to make $10k. Your top offer is $50k then. But don't offer that just yet, otherwise you have no room to negotiate.

Offer $42k, and be prepared to back it up logically (low comps, amount of repairs, etc). Then you can try negotiating and have some wiggle room to eventually land at or below your target purchase price of $50k.

Negotiate a figure that works, have them sign the contract, and then market for buyers. You will have buyers, if you got the numbers right.

This is just an example. Hope this helps

One key thing about seeing the comps: make sure the comps are properties that have been fully renovated inside. This is the true ARV.

If they haven't been renovated at all, this is more of an as-is market value.

The lowest comps that haven't been renovated are often properties bought up by investors, so this is the range that you need to be SELLING at to investor buyers.

Don't worry about the 70% of ARV minus repairs minus your profit formula so much. You just need to know what properties in similar shape have actually sold for recently, because that's your selling price. Subtract off the profit you want and that's the top price you need to negotiate.

@Kay H. 

I know it's an old post for you but I just saw it and thought you might like another perspective. I do all my wholesaling virtually. I do not need to physically drive the neighborhood or even see inside the house. The reason this is possible is that technology these days has advanced to the point where, once you get the kinks worked out, you can do things this way and get deals done. 

Try using these free online resources to check comps (recently sold like properties in that area). Redfin is the primary tool I use as a wholesaler---if they have it in your area be sure to use their "Price Home" feature. This lets you see what properties have sold nearby, and where.

Also, familiarize yourself with their "map nearby homes" feature.

If not Redfin, I think Zillow has similar capabilities you'll just have to play around with it to figure out how to check comps.

@Antoine Nelson 

For example: 

let's say as-is non renovated houses in that area (with similar square footage and needing similar levels of repairs) have been selling for around $60k. Renovated ones at $100k. Focus on the $60k number--that's your target selling price. Let's say you want to make $10k. Your top offer is $50k then. But don't offer that just yet, otherwise you have no room to negotiate.

Offer $42k, and be prepared to back it up logically (low comps, amount of repairs, etc). Then you can try negotiating and have some wiggle room to eventually land at or below your target purchase price of $50k.

Negotiate a figure that works, have them sign the contract, and then market for buyers. You will have buyers, if you got the numbers right. 

This is just an example. Hope this helps

One key thing about seeing the comps: make sure the comps are properties that have been fully renovated inside. This is the true ARV.

If they haven't been renovated at all, this is more of an as-is market value. 

The lowest comps that haven't been renovated are often properties bought up by investors, so this is the range that you need to be SELLING at to investor buyers. 

Don't worry about the 70% of ARV minus repairs minus your profit formula so much. You just need to know what properties in similar shape have actually sold for recently, because that's your selling price. Subtract off the profit you want and that's the top price you need to negotiate.

@Antoine Nelson 

@Calvin Fluker is right about using these free online resources to check comps (recently sold like properties in that area). Redfin is the primary tool I use as a wholesaler---if they have it in your area be sure to use their "Price Home" feature. This lets you see what properties have sold nearby, and where. 

Also, familiarize yourself with their "map nearby homes" feature. 

If not Redfin, I think Zillow has similar capabilities you'll just have to play around with it to figure out how to check comps. 

@Andrew Challenger email sent

@Andrew Challenger As a wholesaler myself, albeit in Dallas, I like to use simple 1 or 2 page contracts, as those are the easiest and cleanest for sellers (and us!) to understand and agree to. I'll shoot you an email with the contract I use, that I got from another big time wholesaler. It works well.