Help with potential first deal!

Bird Dogs, Wholesaling
1

I’ve been studying wholesaling houses for a good while now. I feel I have the general knowledge enough to get deals done.

I have a current deal that I would just like some advice on. Make sure I really do know what I am doing.

Here are the numbers for the potential deal.

ARV - 130k (Comps suggest this, this is actually possibly even very conservative)
Offering 70K
Repairs 6k (This could be lower)

I figured I would assign this for 5k, making the selling price to the end buyer 81k, less than 65% ARV.

What do you all think of these numbers, these numbers are accurate, the accuracy of the numbers are not what is in question, just the validity of a good deal to an end buyer. Basically, will I be able to sell this with these numbers?

Thanks,

Jason

2

Yes if your other numbers are accurate

3

If you sell the property at 81k are you going to do the repairs?

4

Get the contract signed ASAP. The numbers look good. If the repairs are only $6,000 why don’t you do the repairs your self. Then retail the house.

5

If your numbers are correct then they do “work”. Make your offer, get it accepted, sell your contract, make $5k, rinse & repeat!

Chris

6

It is really pretty simple to see if a home is a good deal.

#1 Put the home under contract
#2 Call your buyers list
#3 See if your buyers think it’s a good dealo
#4 If they do keep the contract,
#5 if they don’t back out.

That’s wholesaling in a nutshell

7

Yea I stated that wrong…

Selling price would be 75k, plus 6k in repairs make it 81k total for the investor.

8

Jason,

You will purchase for $70 and rehab for $6K more. There is $54K equity still on the table. If the ARV of $130K is solid, then your end buyer should have no problem giving you about 10% of the equity for your assignment fee.