Wholesaling in Southern California - What are the numbers?

[Aaron Garcia]

Hi guys, I just finished my first wholesaled deal and have some others in the works. However they were done in San Antonio TX and I had a partner there who already knew what he could put properties under contract because of experience. I want to wholesale in my own backyard and its in one of the most expensive areas in the country which makes it unique when knowing what you could get it under contract for. Meaning I need to know what cash buyers consider a deal. So is it 80% of ARV minus repairs, minus my fee? or is it 85% etc. I just want to know so I can put some properties under contract and wholesale some houses!

P.S. Im doing my marketing different if your wondering. FB ads, Adwords, Video SEO and SEO plus more.

[Pratik P.]

The best people that will answer this question for you is your buyers themselves. Give them a call and ask them how much ROI % they are looking for after acquisition, rehab and selling costs.

So if they want to make 15k on a house that cost them 85k to buy and 15k to rehab and sell, then that's 15% ROI (115k ARV).

I have a buyer who bought my last deal at almost 90%ARV-rehab/selling costs. Although my asking price was much lower than that, the deal was simply bid up by buyers. Some investors have ways to really cut costs and also make their profit in volume rather than a flip here and there.