70% of ARV minus repair...achievable in Houston?

[Tatiana C.]

Dear fellow investors,

I'm getting started as a flipper in Houston, have started my marketing campaign (direct mail) but no calls yet! :(

Have reached out to wholesalers and wholesale companies but all the deals brought to me were around and above 80% ARV minus repairs + wholesale fees. I'm really afraid of getting into one of those for a flip, as they appear too risky for someone inexperienced. What intrigues me is that those deals are getting buyers! investors around here are buying them!

I'd really like to hear the opinion of experienced investors, are these the deals we should expect around here? I'm afraid it is not realistic to expect the 70% ARV minus repairs we learn is what we should be looking for. Should I at least expect to get those through direct mail later when my campaign and repeat mail becomes solid and consistent?

Appreciate your help!

[John Broussard]

Hi Tatiana,

I am on the financing side of the business, 70% ARV is the max we are financing so you don't want to exceed that as a rule. We see a lot of deals in Houston and surrounding areas at 65 to 70% ARV. You may want to connect with a realtor who works with investment properties, they can find good deals and run CMA's.