Wholesaling to Landlords

[George Shrokman]

Hello, I am new to wholesaling. I know that an investor looking to fix and flip a property is looking to buy at 70% of ARV after repairs. Do investors who want to fix and hold properties for a cashflow look for that same 70% of ARV after repairs? Or is it more cash flow that concerns them, and what's the comfortable % of ARV after repairs they would look for? For this question my target market area is basically $100,000 ARV. Thanks.

[Kenneth Huddleston]

For a landlord cash flow is king. Although getting a property for cheaper is always a plus, you typically look less at the value and more at the ROI. For instance, if you get a property worth 200k for 150k but it only provides you with a 1% cap rate, its still a mediocre property. Typically landlords look to get a 1.5% return on their investment per month or higher. So if you invest 20,000 into a property, you would want to see a return of $300 profit each month.