Missing something here?

[Brian Brown]

Am I missing something. Are there any wholesalers out there that actually leave meat on the bone for the flippers. I see a ton of posts out there with something like (great equity in this property asking $250k only $20k rehab with a $350k ARV) Well with most using some sort of financing that $250k and $20k rehab is going to be around $25k in funding cost plus 8-10% selling cost so roughly $30k. So just in these two factors you're $55k into a supposed $80k profit.

[Andy Sabisch]

As Henry said, the vast majority of wholesalers over inflate the ARV and under price the repair costs. They often lock up a property sight unseen and the fact the electrical is old, the plumbing is shot or the HVAC needs to be replaced are not factored into their repair costs. With all the gurus out there selling programs to make quick money wholesaling, it is all about moving a lot of paper and spending time to really assess a deal and see what the ARV and repairs are is not something the vast majority will 1) want to do or 2) be able to do.

The goal is to lock up a property and then assign it to someone to flip or hold and pickup $5K to $20K in the process.

I have seen two things happen 1) someone pays for the assign and finds out the numbers they were given were off and the deal no longer works or 2) the wholesalers is not able to sell the assign and they use a weasel clause to get out of the contract leaving the property owner with the property again and a few weeks of lost time,  This then makes it harder for those that want to buy it and rehab the property.

Bottom line is you need to know the area so you can tell if the ARV is legit and then get into the property to inspect it to determine what the repairs should be and base your decision on YOUR numbers not theirs.

Are there legit wholesalers?  Absolutely but they tend to have a pool of buyers ready and rarely post deals on Facebook looking for buyers.