I know that every investor will vary slightly based on investing style but what do you look for?
I try to find deals that after my fee, the rehab, holding cost, closing, RE Agent and other costs are no more than 60-75% ARV this leaves 25-35% on the table for a quick close on the back side.
My buyers list is growing and evryone likes something different but these guidelines I belive will serve me well and help me to anaylze the prpoerties quickly before spending valuable time trying to sell stinkers and looking like a dunce.
I would like to know what you guys out there look for from your wholesalers.
You look for whatever your investor/buyers want. That may seem like a flip answer, but it’s the simple truth.
For example, if you’re finding deals that still have a true 25% left after your costs are paid, but you have investors that are wanting 35% or more, then you’re just spinning your wheels.
As a wholesaler, it’s just not your end that’s important, it’s also what the investor/buyer’s exit that’s important, too.
Raj
Raj,
I don't take it as a flip answer but the obvious truth. If you give your investor EXACTLY what they ask for then you can excpect to make money.
What I would like to know is those of you who buy or would buy wholesale deals what are the general criteria you look for in a deal.
Again, there really isn’t a “general” criteria. As a wholesaler, you need to know what your potential buyers are looking for and as a rehabber/retailer/landlord/etc., you will have very different end goals and so, very different buying criteria.
Examples: a rehabber/retailer will want at least 70% of ARV left AFTER they do all their repairs. That is a general guide, but price range, market condition, and individual investors will vary on this. As a wholesaler, you will need to find deals at 30-50% of ARV in order to allow for the cost of repairs and still be at 70% or below on ARV to the rehabber.
If your buyer is a landlord, they may only want a 80% ARV or so (not very good for them, but good for you).
Raj