Equity in Wholesale?

[Denny Le]

Hello BP,

I was wondering in order to have a good wholesale deal, does the home need to have a lot of equity?

I have another question, for example:

If a home was bought at $200,000, the fair market value is now $150,000.

What options could I take to turn this into a good deal? What type of offers?

Thanks!

[Will Barnard]

Originally posted by @Samantha Lotti:

@Ned Carey @Will Barnard 

How much equity on average should be in the home if a person wants to wholesale the property?

How much equity by percentage or dollar amount? In either question, it depends because the answer ranges from property to property, area to area, price points to price points. Typically, if your purchase,plus rehab, plus wholesale fee is around 75% of the ARV, then you have a deal, but again, that figure ranges for many different factors.

If you are talking about a $75k ARV property, 75% won't be a large enough spread! you would need 65% or better.