Wholesale

[Ryan Phillips]

I am new to REI, but I am looking to get into a few wholesale deals. I have a good basic knowledge of the topic, but I don't feel educated enough to actually do a deal at this point. I would like to partner up on a deal, or partner up for a deeper understanding of the process if anyone is willing. What are a few key points to look for in a "good deal"?

[Christina R.]

@Ryan

@Ryan Phillips - for calculating the ARV probably THE most accurate way is to have access to the MLS - either via yourself if you are a real estate agent or by hooking up with an agent in some fashion (family member an agent? Agent willing to run comps for you? etc). This is because you can get SOLD data on like properties by running it through various filters (location to target, age, size, bedrooms/bathrooms, year built, upgrades (or not), etc).

HOWEVER, if you don't have access to the MLS - you can determine ARV with a fairly solid degree of accuracy by drilling down to your target farm area and studying comps - both listed currently and sold - on Zillow, Redfin, and maybe some regional sites. We have one here in our area that gives pretty broad information. What I've done is I've sent up Zillow searches and some regional searches for my target zip codes and I get notifications when something hits the market and when something closes. After just reading through these emails for several months and driving around these target zips during my spare time to get more familiar with street names, etc., I have an instant "feel" for whether that MLS list price is market price, or if it's below and whether its a SFH or a townhome, etc. If it's out of the norm, I know to research further by actually opening up the email and looking at the listing.

Once you have ARV - and I would suggest you always lean to the conservative side of that number - you then can take 70% of that for holding and costs and subtract out your estimated repair value and your fee to get what you - as a wholesaler - would attempt to get the property under contract for. If you don't factor in a fee you are hopefully going to be able to partner on the deal and get your $ on the back end (which is a great way to get into this business with not a lot of money or experience but it takes time and trust to cultivate these type of relationships - hence, again, try to find a Meetup and/or REIA in your group where you can start networking).