Preforeclosures/ Foreclosures/ REO

[Tyler Schuman]

Is there a % rule that I should be using as a base % (kind of like the 70% rule for flips) when considering buying a foreclosure wholesale? I am trying to get started in REI but I lack the capital to be able to do rehabs/flips so I am looking to build my capital reserves by wholesaling deals. I have an investor that will fund all my wholesaling deals for no transaction fee, but they don't finance rehabs and I lack the capital for the down payments so I have targeted a few REOs and preforeclosures that I believe I can buy that would appeal to rehab investors and a few that would be turn-key for the buyer. My investor requires that I have the buyer already targeted as they do not want to have funds out for more than 30 days. Any advice would be greatly appreciated.