Estimating Value (wholeselling)

[Brian Woitte]

After an appointment has been made to get a contract signed with a seller and you begin viewing the property general rule of thumb for determining your sell price is 65-70% ARV minus repairs.

What is the best practice for determining the amount of repairs that need to be made on the spot? I have heard a $5-$15 per sqft where $5 is just paint and carpet and $15 is a gut job.

[Sharad M.]

Are you going to be wholesaling to a flip investor or buy and hold investor?

Both those numbers seem very low for a flip. If I am flipping a 1,000 sq. ft. I am AT LEAST doing flooring, paint, finish plumbing, finish electric, door knobs, kitchen hardware, appliances, landscaping, final cleaning and those items will add up to around $10k or so. Now I am yet to find a deal where I only need to do these items.

And if it's a gut rehab and I have one of those going on right now, then the number is a lot higher. And once you gut the house, there is almost always you find some more issues to deal with.

Now if you are wholesaling to a buy and hold investor, then those numbers will be a lot less.