All Forum Posts by: Jeremy T.

This may be an idiotic question, but wouldn't obtaining a license in the state you are wholesaling help to mitigate this issue?

All I know is that people like Sharon Vornholt, who has proven to be an extremely effective "wholesaler", mention using the 70%ARV - repairs - wholesale fee as their basis for their offer. I re-listened to Sharon's podcast #12 last night and she specifically refers to using the formula I stated.

Yes, your market may vary.  

As a beginner, if you shoot for and hit that number, chances are you will find yourself with a very attractive deal to flip to an investor.

One other comment. Your ARV comps are using properties with a pretty wide range of square footage. I am not sure that using $/sq. ft is an effective comparison tool when using such a wide array of properties. I may be completely off-base regarding this, but I have read that a 400-600 sq. ft variation (200-300 below and above the subject property) is recommended.

Best of luck to you.

::inserts random popcorn eating .gif::

Nice post, I'm looking forward to reading the responses.  Stick with it. I listened to Podcast 12 again tonight (Sharon's), and her metrics regarding repeated touches are eye-opening.

How many months have you budgeted for?

Good luck man, I'll be following.

I'm still a wide-eyed n00b to the REI world, so what the hell do I know...but I couldn't agree more with what you stated.

@Edward Adekanbi 

My two pennies,

Go to your local community college and enroll in classes to earn credits toward being able to sit for your state RE license exam.  Take & pass the exam.

Develop a 6-9 month marketing plan to generate leads.  Reinvest profits back into your marketing.

If you are looking to rehab or buy and hold with 10k, I cannot help you with that.

The 70% rule is just a general rule of thumb that will provide a potential investor with an attractive return.  Your area may adhere to different metrics.

Circumventing assigned contracts?  Sounds like a decent fellow.  

I maintain that you get the property under contract for <110k.  You can then "circumvent" his involvement and find a buyer who appreciates your services and ability to provide a deal.  

Don't be held hostage, that is no way to develop a business.

Let's look at your numbers applying the 70% rule and rounding up to the nearest 5k on rehab: 

Let's be conservative and say ARV is 200k.

200k*0.70 = 140k

140k-30k (rehab) = 110k

IMO, 130 is far too high.

Is this a motivated seller lead?  Are you flipping the contract or staying on for the rehab?

Remember, if you aren't embarrassed by your offer, it's probably too high (or something to that effect).

Podcast 27, Jason Grote stated that whatever you see on the bandit signs is what people are searching for on the interwebs (I'm paraphrasing).  

With that in mind, I think you are good with what you have.  

Aside from your involvement, the two businesses are essentially unrelated, no need to confuse things.  One generates leads, the other income.

 So next month you sent her a pack of baby wipes and asked if she had a property to sell? ;)

I'm certainly not going to have the motivation to pen a somewhat manic and ill-conceived (aka. potentially brilliant) idea in the middle of the afternoon.

My best writing happens after dark, but maybe that has something to do with having two craz...errrr...wonderful children under the age of 4.