Wholesaling/Am I understanding this?

Am I understanding this correctly?

  1. Have a continually growing buyers list
  2. Find a property that fits your parameters
  3. Make contact with the owner
  4. Do a walk through inspection
  5. Calculate: ARV, repair cost, holding cost, closing cost, OOPS! cost, expected profit then subtract these costs from the ARV to determine max I can offer.
  6. Make an offer and, if accepted get under contract with an assignment clause.
  7. Contact buyer(s) and assign contract

ps: a. After step 6 should I run a title search & get repair estimate from contractor?
b. Should I put together an investment packet with pictures, comps, repair estimates…etc to send to potential buyers?

  c.How much (or little) do investors who buy contracts expect from a wholesale deal?

Comments please, or send me a link if this subject has already been discussed.

Normally you don’t need to get contractor estimates, it will be up to the buyer who you are wholesaling to. As a wholesaler it has been my experience to make offers based on the “As is” value rather than the after repair value, this is because you don’t know what kind of repairs the end buyer will be making.

You should be more concerned with what the property is worth as it sits, relative to other properties that are currently on the market.

Pictures, and comps are the the only thing really needed in the packet, you could ad more but those are the basic 2 things needed.

The amount that investors want to make per deal, varies with each deal

Thanks for the feedback. Should I do a title search or is that something the potential buyer will be doing? It’ time for me to jump in this water and swim so I need to clear up any lingering excuses not to start.

So eric what you are sayng is that as a wholesaler all you need is comps for the as is value why other say you use arv-repairs etc i don’t understand?

As a purchaser of wholesale prpoerties, I think it looks more professional if the wholesaler has done his/her homework. When I am presented with a property complete with Comps, ARV, estimated repair cost, etc., I tend to pay more attention. It will usually get me to visit the property. Just a thought.