Wholesaler in Detroit first potential deal

[Shanae Williams]

Hey everyone! I’m a active new wholesaler never done a deal before. I’ve been marketing for a couple weeks gotta text from this guy who owns this home he’s selling this 90% move in ready 3/1 bath home (updated kitten & bathroom) in Detroit. I’ve check comps homes are selling around 20-45k around the neighborhood rent going from 750-900. Nice home just need front & side doors maybe tlc needed to the garage & basement. My question to you guys is how do I determine what to offer in order to make a small assignment fee and be able to sell at the price an investor would want. I’ve always get stuck at this stage, I don’t want it to go away because it’s a potential deal I believe. Any suggestions?

[Christopher M.]

@Shanae Williams

Have you toured the subject property? Do you have an idea of what it would cost to get it up to move in ready? You need to shrink the ARV range to 5k or less.

The basic formula is ARV - Needed repairs - 3-5k for assignment fee = offer

example $45,000 - $10,000(repairs) - $5,000 (fee) = $30,000(offer)

Hope this helps