Deal Analysis - East Linden Ohio (Columbus)

[Alex Brandt]

Hello Everyone, 

First of all, please notify me if this is not the correct forum for this topic - I only seek your advice. My business partner and I are pursuing our first wholesale deal in East Linden Ohio (Columbus) and I have a number of questions. I understand that it may be difficult for you to thoroughly assess the deal through a post like this but your opinion and advice would be much appreciated. Please assume the perspective of an investor looking to purchase this contract.

The Deal:

• Purchase Price: $38,000
• ARV: $100,000
  • Comp criteria: < 1 mile driving distance, 6 month time frame, 3 bedroom
  • Still need to adjust comps - in progress
• Est Rehab: $20,000
  • Spoke with local contractors regarding price / sq ft of various tasks
  • Spoke with home depot in area for material costs
• Back Taxes: ~$2500
• Basic Info: 3 Bed, 1 Bath, 1600 sq ft, 50X80 ft lot, Built 1900
• Area Statistics: $78 Median Listing Home Price/Sq Ft ($78 X 1600 = $124,800)
• (This is taken straight from Realtor.com for East Linden Ohio)

Notes:

• New water heater (Permit)
• New furnace (Permit)
• New windows, doors, windows (Permit)
• (Siding was in progress then contractor disappeared)
• Second plot of land included next to property

Critical Questions: 

• What would be a good resource to learn "Wholesale Wording"? My partner and I would like to ensure we are not advertising the property specifically but rather the contract. Wording such as "I have a contract for sale in east linden" and so on.
• How does one typically go about adjusting comps for a particular region? I am finding some rough information for my area but do not have a clear (+100 sq ft = $$$). I plan to do some data analysis on the area to better quantify this.
• As a wholesaler, how can I best present rehab costs to buyers? My partner and I are planning to very thoroughly review all items in need of repair. We will then present a set of general categories with repair costs in each. This will be accompanied with a statement like "Further detail available upon request".

Again your comments on this would be very much appreciated. Please let me know if any additional information would help paint a better picture. I have extensive information on this deal. Have a great Friday!

-Alex Brandt

[Antonio Joseph]

Hello Alex,

Hope all is well. 

learning the lingo of real estate comes with experience, it's almost like learning another language you can study words and definitions all you want but the best way to learn is through conversation with someone who speaks the language. 

When it comes to comps, you have to know your market. I say this because certain neighborhoods are better than others and they can be closer in proximity than <1 mile driving distance. For example if your comps are in a gated community and your subject property isn't that can affect your values. If your subject property is in a different school zone than comps that can also affect you value so you really have to know your market.

Rehabs are always going to be estimates because everybody is going to have different idea of what they would do with the property. I would focus on learning the market rate for rehab items and use that data to build your rehabs.

-AJ