Wholesale Scenario good or bad?

Bird Dogs, Wholesaling
1

I’m a beginner investor and have been looking to do my first wholesale deal for quick cash.I found a property and need some good advice?The following is the current scenario.

              3br 1bth asking price $15,000
               ARV 60,000
                Repairs 20,000

Would like to put it under contract for 15k then assign the contract for 5k as
my assignment fee.Would this deal make sense.
Any advice would be greatly appreciated. Thank You

2

Be like Nike “Just Do it”

It won’t hurt anything. Worse case scenario is you’ll know where the wholesale market is at for your next wholesale flip. Good luck.

3

Aaron,

Depending on what you are using for your formula ARV x .65 or .70 minus repairs and what you need to make that is going to be somewhat close.

You will not have much room to be flexible especailly on your first deal, and if the reapirs are off then you are even in more trouble. Who did the repair estimates? If you did and its your first deal you are prob off, if the owner are telling you they are most def off… So i would be careful on this one, and you dont want to get in the habit of just walking away from deals and also losign any escrow money

Take Care,
Jarred

4

Im suprised its still around if those numbers are indeed correct. Don’t give them list right away unless its a smoking deal.

Nate-WI

5

First off. Congrats on trying to make this happen.

You have to be sure of your repair numbers and arv.
always be conservative. If you think $20k in repairs, make it $23
If you think ARV is $60k make it $55.

Does it still make sense?
Also $20k in repairs looks much for a $60k property.

You may need to revisit the numbers.

I will say this: With wholesaling you do have an out and will limit your risk to the earnest money if you sign it up properly.

If you feel good about it, sign it up or partner up with someone who can.

Take care

Dennis

6

with those numbers and ARV x.65 minus construction, that makes the wholesale contract price 19k and you’ve got to pull your fee out of that 19k somewhere. plus, I’ve been told that buyers, like any investor will likely try to beat you up on the fee. if you want 5k for a fee, I’d assume the fee to be 8k which would make an offer price 11k.

I actually don’t have any experience as of yet but I do have good advisors so I’m sure my numbers are at the minimum, fair.

7

is the owner a private person, a wholesaler or a bank?