not so wholesale in Houston

[Todd Shampoe]

I am new to flipping and have been looking at a turnkey wholesale company to get properties. As a ball park I am using the following formula to determine the buy price. (.70 * ARV)- repair cost. So a 100K ARV house that needs 20K in work, I would try to buy it at 50K. The recent list I got from the wholesaler is as follows:
(arv)160K *.70= 112,000-(repairs)30K= 82K buy price. But in this case the wholesaler wants 95K..
it seems that they are selling them to rehabbers for 60 to 70% of ARV is this right?

[Marlon Wilson]

I'm a wholesaler in Houston and it's been hard to get those great 70% - repair deals.If you're looking for them good luck, but most wholesalers have "regulars" that they know will be buy them with one call. I've been flipping about 2-4 properties a month and they are usually wholesaling a "subject to" deal to landlord or wholesaling a property at almost retail to someone who usually doesn't mind putting a little work into it. My deals have gone to more Hispanic retail buyers then investors, which works for me.