Updated almost 10 years ago on . Most recent reply
Calculating Wholesale Deal
I make an effort daily to learn something new and sharpen my skills to advance my wholesale business. However when it comes to figuring comps, assignment fees, etc, I still have a lot to learn. Recently I encountered a possible deal and not sure if my numbers are correct. There are three houses involved but I will share one just to see if I am accurate with my numbers. The house has been sitting up for many years and is currently in probate and the process should be completed in approximately 2 more months. I estimate the ARV @ 105k. I had a contractor come out and give me a repair estimate and he said 40-45k. After using the 70% formula and deducting the repair cost @ 40k I am at 33k. Now from this amount I still need to get an assignment fee and be able to give the owner a offer. They owe a little under 10k in back taxes and I am sure there are code enforcement fines as well. Initially my thoughts were to decrease the repair cost estimate I received from the contractor by 10k then recalculate the value. All comments and feed back are much needed!