Wholesale Buying Criteria

[Bill Leonard]

Hello, fellow BPers!  Looking for your feedback in the Wholesale area.

Three of us recently formed Intrepid Investing LLC to invest in SFRs to rehab and sell. We have a couple of deals under our belt now (GA and IA) and have been fortunate to have our own private money to fund them.

We are now looking to Wholesaling as a means of generating "today money" since our other funding and investment returns must all be returned to the retirement account.  So in addition to finding and generating our own Wholesale deals in the larger Chicago area and beyond, we also want to entertain solid assignment deals from other Wholesalers.

Below is the checklist we have created for Wholesalers to separate "the chaff from the wheat."  We have unfortunately seen too many underwhelming Wholesale deals presented to us already. Admittedly we want to optimize our due diligence time on solid deals rather than wasting it on shaky ones.

So we are looking for your input on the criteria we desire to see from a Wholesaler looking to assign his/her property under contract to us.  Certainly our formula will change depending on the RE market in a specific region at the time.

Please give us your input, both positive and negative, when it comes to our criteria for Wholesalers who want to assign their contract to Intrepid.

• You have the property under contract
• Provide a copy of your contract with the Seller
• Briefly explain your role in this transaction
• Your Purchase Price with the Seller = ARV x .68 - Repair

ARV = After Repair Value

.68 = 68%

Repairs = Cost to rehab/fully renovate the property

•  Furnish three (3) comps sold in the last three (3) months within a 1/2 mile radius of your  property under contract
•  Provide scope of work detailing how you arrived at your Repair estimate
•  Provide a location map displaying your property under contract and the three (3) sales  comps
•  Your contract assignment fee

Thanks!