New to Wholesaling: Finding the Right Deal

[Sandra Sanchez]

I've decided to start my Real Estate Investing journey with Wholesaling. After deep-diving into research about what wholesaling is, I've realized if successful it could be a great gateway to acquire the capital I need in order to buy other properties in my market. I am a real estate agent that has access to the MLS, but I've seen through my research that the best deals are the ones off-market. I continue to find a lot of useful information on what it is to wholesale a deal but my biggest obstacle is knowing what a good deal looks like. I know that reaching out to investors is a great way to find out what they would by for cash, but I would like to do more research on my own before involving potential clients. I've made it my goal that by April 1st, I would start taking actionable steps towards sourcing and landing deals I can take to potential sellers/investors.

My question is: What makes a "good" deal and/or how do I know when I've come across a "good" deal? What are the best sites and what filters do I use to pick the best deals? My biggest fear is getting on the phone with a potential seller and not being able to articulate or persuade them to sign a contract with me. Everyone knows how hard it is to convince someone through cold-calling that you aren't wasting their time. I want to know when I've found a good deal in order to speak confidently with a potential seller. My market is in Boston, but I am interested in virtual wholesaling as well. Any incite helps, thank in advance!

[Jessie Dillon]

i'm also in MA! a good deal for a SFH flip would be the buyer being ALL IN at absolute max 80% of the ARV (including the PP, renovations, assignment fee, closing costs), but a lot of investors would say it has to be max 75%, 70%, maybe even 65%. that said, shoot for 65%, and know your renovation costs. i've used $65/sqft for a gut reno, and until proven otherwise i'm assuming it's a gut job, BUT that PPSF is not always accurate, sometimes there are unique issues with the property that would drive that number way up. it gives you a place to start, though.