All Forum Posts by: Account Closed

I know it would vary from house to house, but does anyone have thoughts about any general formulas for estimating repairs. Like $ per sqft of a house depending on levels of work needed? For example some lipstick rehab compared to needs fully updated compared to gut rehab? Thanks in advance, Stephen

I’d imagine there’s such a thing as too flash...right??

Originally posted by @Doug P.:

@Roy N. What is the definition of a "service"?

Also, from what I read on the DNCL registry website, it was talking about selling said service, not about using such service to buy. But like was mentioned, it is a grey area.

Originally posted by @Caleb Heimsoth:

Doug Pretorius if they have little to no equity it’s not gonna work to wholesale their property either.

There are plenty of ways to be an ethical wholesaler. Here’s what I would say you need to do to be a completely ethical wholesaler and actually provide value to sellers and end buyers.

1. Tell them you’re going to find an end buyer. Don’t sugar coat it or use vague terms. Be honest.

2. Have cash to close in case you don’t have an end buyer. Saying you’ll buy a property and then don’t is not a good thing to do time and time again.

3. Become really good at rehab numbers and don’t cut corners on this to make it work. When a wholesaler comes to me and says a full rehab to get the place in retail quality is 8k I already know it’s not a good deal.

4. Don't pad the ARV. If you've got two comps of 120k and 135k, your ARV should be around 125-127ishk. Don't come to me and say the arv is 140k, when it clearly isn't. If you can't find comps then it's also likely going to be hard to sell for the flipper.

I have seen some good wholesale deals, did the right person in my area. They typically looked something like this: wholesaler asking price of 20-30k, House needs 40k rehab and ARV is 100k ish. Note the giant discount between the arv and the asking price.

If the arv is 130k and you’re asking 99k, idk how that’s going to work.

This is awesome. As a wholesaler starting out, my main focus is ARV & Repair/Remodel estimates. I've even been accused of overestimating repairs, in a wholesaler facebook group, which I disagreed with for that particular deal.

I find running comps for ARV to be the easier part of the 2 subjects. I have a method for estimating repairs, but from what I read it really just comes with experience. I plan to have an inspection done by a licensed inspector, on any house I put under contract. But what should I do about really pin pointing the updates? Is paying a General Contractor to look at the property to give me a precise estimate an option? All I know of is having contractors give bids, which could turn out to be different. Also, would update/remodel bids be something I could include in my wholesaler packet, or are those sort of too unofficial?

Apologies for putting all of this after a quote. Lol

Originally posted by @Matt P.:

Since this thread is one of the first links that pops up when I Google your name your cirty and "real estate" I'd tell the truth lol.

 Lol well I am super new

Originally posted by @Nicole A.:

Just tell them you used a service that pulls public records, such as homeowner information. Using the term "public record" might remind them that their information is no secret, and therefore, you did nothing wrong/illegal/shady in getting that information.

 I love this!! Thanks!! 

Well it’s one of my first leads, but telling a seller I found them on whichever list seems like it’d make them feel uneasy. But I do agree that honesty and transparency is best.

I was just asked by a potential seller, via email, how I got their address. I used Listsource to pull my first list and sent out a mailer. Should I just mention the county assessor page? Lol

Does anyone have an example of how to respond?

Thanks,

Stephen

@Kelly Conley Just Tulsa County, for now. Thanks! :) let me know in a pm. 

@James Barnhart I’m glad to hear there are still some investors out there that enjoy doing business with a good wholesaler. Lol I’ve just seen a lot of bashing so far, with my short time of going through the forum threads. I do realize there are a lot of bad ones though, as there are with any position. I’ve heard horror stories about some property managers already. Lol

I’m just starting out, but on the leads I have gone through, I do my due diligence. I’ve even been accused of overestimating repairs on a property I brought up in a Facebook group, which I highly doubt I did. When I have something under contract, l plan to have an inspection performed just to confirm my numbers and include a report, as well as pictures and an uncut walkthrough video; as I’m going to be presenting my buyers with “wholesale packets” and offer them to have their inspector/contractor walk through before they make a decision. 

My plan is to be as thorough as possible.