Several Questions regarding Atlanta Wholesaling

[Andrew C.]

Hi everyone, I'm new to the board and investing. Although I'm from Los Angeles, I've been looking into investing in Atlanta since I have family out there that can occasionally help. I've read the other threads about what investors say about Atlanta, but what about for wholesaling? What areas should I look into? What are investors in Atlanta generally looking for from wholesalers?

Secondly, I recently won a bid on the HUD website online for an uninsured property in Lithonia. I was very surprised winning the bid at 85% of listing price, as I was just testing the waters finding the threshold. I got it for $40k, but looks like it needs quite a lot of work estimated around $20k+, when the surrounding area is selling for $40-55k. The obvious gut feeling was to cancel it, but as a newbie, could this have been the wrong move? All I'm doing is to look forward to wholesaling it, and I don't think it was a good deal for my end or the buyer's end.

Thanks ahead of time, and I look forward to network with you all.

[Ryan Webber]

I would follow your gut feeling if you haven't already. Cancel that contract.

With just the basic 70% of ARV minus repairs you should be somewhere around $10,000 for that house IF its worth the high end of your comps. You should probably start reading up on the Wholesaling Forum.

Learning how to determine IF a property is a deal or not stands as the best first step you can do as a new wholesaler.