Phoenix Wholesale Properties - 20 to 30 Deals a Month

[Dustin P.]

First off, although I put this under service, I want to make it clear that I am not trying to sell any specific sort of service, mentorship, etc. and I am not trying to represent anyone as a real estate agent. I simply want to provide investors in the Phoenix area with another source for deals. No membership fees or anything like that. Moderators, if I'm missing something or violating something, please let me know.

I work with a wholesale brokerage called Networth Realty in Phoenix and I am putting myself out there to any investors not currently working with us. If you are looking for fix/flip or buy/hold deals I would love to sit down with you and discuss what I have to offer. I don't believe in the "Blast the deal and pray it sells" approach so I prefer to sit down with people at my office before sending any deals to make sure that we are both on the same page on how our business model works, what your expectations are, etc. If you are an out of state investor, I would prefer to set up a phone meeting to cover everything as well as make sure you have a "Boots on the ground" contact here in Phoenix.

I understand the rep wholesalers get, believe me I'm on pretty much every blast list in Phoenix as well so I see the deals that come through, but I believe the deals we send out are better than 99% of them. A common theme seems to be that wholesalers over-inflate their ARVs and under-estimate rehab costs. I won't say that we are the most conservative bunch out there, as I think you can ask 5 different people and get 5 different ARVs and 5 different rehab bids,  but I am confident that if you ask anyone that's purchased a property from us they would say that we get it closer than any other wholesaler out there.

As a company nation-wide we do track every deal that we sell that an investor rehabs and resells on the MLS. On average in Phoenix the properties have sold for about 6% higher on the MLS than what we projected. Obviously it would be great to also track rehab costs but realistically there is no accurate way to track that. Our business model thrives on repeat buyers and making long standing business relationships so we cannot be successful as a brokerage if our investors are not successful.

As stated in the title we sell 20ish deals a month. Everyone in my brokerage is a licensed agent and we do close on the deals. Our fees average between 5-10k depending on the deal and we will do a deal for a minimum of a 3k fee. Right now with the current market we are selling around 65-70% of ARV. Obviously higher end or more involved deals will have more spread, and more cosmetic/low risk deals will have less spread. We might sell a 60% deal in Phoenix if it needs a lot of work and the area has longer days on market, and we may sell 70+% in Mesa for a cosmetic only/wholetail deal in an area with little to no supply. As the market changes we too change with it and with investors' expectations.

I look at things like an appraiser would when I comp, meaning 6 months back, similar properties, not crossing major roads, etc. I'm taking value off for backing or siding a busy road, backing or siding commercial, converted garage, two story vs. single story, 

We do have a preferred title company that we use for all transactions. However, we also pay all closing costs involved minus tax/HOA prorations and lender's fees. So if we are selling a property for $200k and you're buying it cash, you are pretty much paying $200k. If your lender charges you a $900 fee and some pre-paid interest you may be paying $203k because you're also now paying a lender's title policy, etc. Most wholesale deals are "net to seller" and ours are more "net to buyer."

As far as contractors go, it's a tricky one. I'll never say "Use this guy" because, as we all know, contractors can go from hot to cold or vice versa real quick. However, I am always looking for investor friendly subs, investor friendly GCs, low cost supply stores, etc. If you need a flooring guy, I will provide 3-4 people that I've vetted and/or been recommended. One guy might be at $2.50/square foot to install tile, one may be $2.00, one may be $3.00, one may be better for high end jobs, one may be faster than the other, etc. I'm always willing to get some bids to help you out, but I'm not a project manager, so I would expect you will be getting some bids yourself. This is an ongoing struggle that I'm sure we are all aware of but I continue to try and make connections every day with the most reliable people I can.

We do have a national account with Home Depot, and with that comes some perks. Whenever you purchase a property from us you will get an app you can download that will give a certain discount whenever buying materials. I believe it currently ranges between 3-25% depending on their margins. I also get a 10% military discount that I'm happy to share for Home Depot and Lowes that can help as well.

We do work with a hard money sister company as well if you need funding for the deal. I'm also a licensed loan originator and could discuss this details if interested.

In addition to the above, we also have on staff a retail listing agent that will list the property for 1% on the sale side. We still recommend 3% for the buying agent but obviously everything is negotiable. This is just another opportunity for you to put some selling costs back in your pocket.

Also I want to put it out there that I am not looking to co-wholesale. We do not allow our contracts to be assigned so the buyer who works with us must be able to close. If you are an agent looking to work with us you can add your commission onto our purchase price, or better yet, get your investor into a great deal and then get the back end listing! We like to keep as much equity in the deals as possible.

Lastly I just want to say that, although this is my main job, I'm also an investor as well, so I understand how the process works. I did 1 fix/flip and 3 fix/hold properties last year and hope to do the same amount of deals this year. Although my goal is always to do as much due diligence on the property as possible and provide the most realistic comps/ARV, you always need to run your own numbers. I'm not a salesman, I've actually talked people out of buying deals that I didn't think were the best fit, and I want the people I work with to be successful.

If it sounds like I can be an asset to you please feel free to send me a message and let's connect!