Newbie from Chicago...Seeking help from Vets!

Hi everyone,
I’m new to all this like a lot of the other people out there. I get the idea of wholesaling and am on my way, doing a lot of the legwork. I’m compiling potential end buyers and figuring out ways to market myself more. Would love some advice from some of the experienced people here!

Anyone from the Chicago area that area familiar with Illinois RE laws and could possibly walk me through some of this? One of main main questions is where to get some of these contracts…do I just have a lawyer draw them up with proper clauses or do I obtain them elsewhere?

Also, I’d really appreciate it if someone could post the exact formula on how to calculate the highest offer that it would make sense to put on a property. From What I understand its…

asking price-repair costs-my fee-en buyer’s profit=highest offer allowed

I know people talked about the 70% number that you would put in it. Any help would be appreciated.

HI there CubbyBr:

First, the MAO formula is what ever you want it to be. But generally a lot of investors I know do it this way:
Get comps and determine what the actual after repair value is. What will the house sell for quickly? Then MAO could be 75% or 70% of Arv minus the repairs needed is MAO. That 25% or 30% reduction are your holding costs, buying and selling costs and your profit.

If you are new I would highly recomend joining a club or two in the area and we have at least a couple great ones in the Chicago area. Look up a club called WCRT. Actually about 30 of us investors are getting together this coming Thursday evening in Oak Forest at Olivers to talk investing. How about coming out. If you think it’s too far to drive, how far would you drive to have 30 experienced investors in one room?

Drop me a note if you want more info on Chicago area investing. Also, you might want to use a better looking signature in your posts so people know who you are other than CubbyBr. Would you loan money to a guy called CubbyBr??

I sent you a PM but I’m not sure if it went through. Let me know, thanks!

I wouldn’t offer anything higher than 70% of current

Even at 70% that is cutting it pretty high for median price ranges.

Depending on the type of lead, I will start my wholesale offers out
at 30%-50% of value.

You can find contracts anywhere. If you can afford to hire an attorney
to draw up contracts for you, that may be the best route, otherwise,
purchase a good course and you can use those contracts until you
gain more experience.