Columbus Ohio Buckaroo

[Joseph Brantley]

Hello future friends and associates I'm new to bigger pockets. I also am very interested in wholesaling real estate for starters just a fast learner and willing to receive help or mentoring from someone near my area . Columbus ,Ohio that is let's get started ..I am ready 😀

[Adam Adams]

@Joseph Brantley,

I do wholesales, flips, and holds in NE Ohio.

The main thing is analyzing deals properly. Once you can do that, the rest is cake. I really mean that! but a lot goes into analyzing a deal, including: $/SF, Average Days on Market in the area, how easy or difficult it is to get permits in the area, how long the flip would take, comps/ARV, Rehab, Rental Rates, how the area is trending, holding/carrying/hard money costs, closing/commission costs etc.

If you can analyze the deal, you can then negotiate the deal with sellers, buyers, and lenders. It all starts with analyzing it correctly. 

Most wholesalers think they have a good deal when: 

ARV=80K, Rehab=20K, and they have it under contract for 50K, all they see is 10K profits. 

But when I look at the deal I say: "if these ARVs and repairs are accurate I would lose money buying it at 50K." 

Lets do it together real quick:

80K ARV

20K Rehab

50K Purchase

Money borrowed=70K 

Time borrowed= 6 mo

Hard money Costs=7K (10% of 70K: 2points on front 2 points on back, and 1% a month)

Real Estate Commissions=8K (10% of 80K: 3% to listing agent, 3% to buyers agent, and 4% to title work, doc stamps etc)

...so the flipper would take 6 months to lose 5K and you still havent gotten paid either...

But wait, there's more: Upon further inspection the wholesaler's numbers were wrong anyway, the flip is going to take 32K and the ARV is really only 64K and I can only buy it for 12K (lets say 9K to the seller and 3K to you)

12K + 32K = 44K Hard money costs 4.4K and closing costs 2.5K, RE commission is 4K

Total costs = $54,900

Sale Price = $64,000

Total Net to flipper= $9,100 

Joseph, I am not necessarily a mentor, yet. haha but I would be willing to answer any of your questions. 

ADAM ADAMS