Two Wholesaling Questions

[David Vesta]

I have two questions regarding wholesaling:

1) How much information/due diligence should I provide potential investors?

2) How much of a spread are investors looking for when purchasing from a wholesaler?

For the first question, this is what I was planning on providing to investors on my cash buyer's list:

• Recent comps (compiled from House Canary (paid), BOA comp tool, FSBO comp tool, Zillow comp tool)
• Rent Fax Pro Forma Full Report (paid)
• Title Check (paid)
• Renovation Estimate (paid)(Fix-n-Flip estimate & Rental rehab estimate)
• Pictures
• Video Walk thru

I'm wondering if this is too much information, or if this will make it easier for an investor on my list to pull the trigger?

For the second question, here is what I've been using as my wholesale formula:

• Purchase Price + Rehab + Closing costs + my fee = 75% of ARV

Example:

• ARV = $200K (after repair value)
• IV = $150K    (Investor's value)
• --------------------
• C/C = $4,500  (closing costs)
• Rehab = $30K
• My fee = $10K
• --------------------
• MAO = $105,500 (maximum allowable offer)
• S/B = $100,225 (starting bid - 95% of MAO)

So, for this example, the investor would be making $50K on this deal. Would this be considered a "good deal" for a investor/cash buyer? Or is 70% of ARV more in line with what investors are looking for?

Any information or advice would be greatly appreciated - thanks!