ARV and Repair estimates when wholesaling

[Jason Munck]

Hi BP! I have never done a wholesale deal and would love to know what the community thinks about a question I have.

When wholesaling a property I know that I should be estimating repair costs and ARV to determine how to price the deal. However, I have heard that most buyers don't rely on the ARV and repair costs from the wholesalers(and I agree that they shouldn't). Is it even worth sharing my ARV and estimated repair costs with potential buyers since they don't rely on it?

Would it be more useful to tell the potential buyers what work needs to be done instead of giving a repair cost estimate?

[J Scott]

The information the wholesaler gives me about the deal will let me know if it's worth spending more than the time it took to read the email. If there is no ARV or rehab estimate, I won't waste my time (since 99% of wholesale deals that cross my desk aren't going to be interesting to me); if the ARV and rehab estimate indicate that the deal may be good, I'll do some more investigation.

If a deal comes along where the wholesaler's numbers indicate a potentially good deal, and then I find out that the wholesaler is either a liar or completely uneducated when it comes to determining the ARV and rehab estimates, I likely won't look at any of their deals in the future (to avoid wasting more time).

So, moral of the story:

1. Include ARV and rehab estimate

2. Make sure the ARV and rehab estimate are reasonable, even if not perfect. In other words, ere on the conservative side.

If you don't know how to estimate ARV and repairs, learn before you start sending out deals or have someone help you.