Right formula to use in Cali wholesaling

[Ashley Dupoux]

Ok so far I see that the 70/30% formula isn't quite recommended in Cali. But I get so many strategies that it gets confusing and less encouraging. I have cash buyer yelling (don't live in Cali) saying comp times 90% minus repairs times 80% than subtract the 10% for COS and than another 20% for state & federal taxes along with carrying cost, risk and profit for rehabbing, which I believe the 10 and 20 % are in consideration of the flippers. But then there is Sean Terry's strategy by adding the 3 lowest comps and divide by 3 and then taking out the COS, MR, and ROI = 10%, 3%, 5% and then the repairs which is #sqft times $8 -$25 or in Cali higher like $40 per sqft for serious repairs. And you will get your starting price. To get exit price add top 3 comps divide by 3 than times 70%. I like Sean's way but in Cali will it work? If you wholesale in Cali what works for you? Any advice is appreciate it especially with a formula for Cali. Thanks

[Kurt Michaelson]

@Ashley Dupoux I've just used the BP calculator and even when I've asked for some feedback on a potential deal with other investors, in Riverside, or Temecula, they've used 70% in calculating their numbers.

If you're going to wholesale, it might be a good idea to join a local real estate investment club to ask some more questions with others in the area where you'll be searching for properties to wholesale. You can find which groups are closest to you by going to Meetup.com. I hope this helps.