My First Wholesaling Deal ... Hopefully

[Darrie W. Bennett]

    According to "The Ultimate Guide to Wholesaling" Re: Fixed Costs ... I should include the Holding Costs & Transaction Costs on both sides of the deal to use in my MAO.

Comps ... All three are PUD's ( Planned Unit Development for you newbies ) from the same development. They are exactly the same.

1. Sold 9.12.97 for $186,900 ... completely upgraded

2. Sold 2.12.01 for $294,000 ... Sold "As Is"

3. Sold 4.11.03 for $ 372,500 ... comments "Well Kept"

    What should I use as an ARV ?

The "Property Analysis" sheet the buyer uses states he pays ( ARV x 70% ) - Repairs which equals $86,403.

The Wholesale Calculator states buyer can pay $124,274 and my MAO = $119,274.

My fee is $5,000

Buyer's profit is $20k ... he requires 10 - 15% profit based on the sales price.

Rehab budget is $35,486

If I use $200,000 as an ARV the buyer will receive a 12.08% ROI.

What should I do ?