Wholesale

[Ryan W.]

Still a newbie here!

In general, how much information does a wholesaler know about a property? Do they know what the ARV is, the cost of repairs, local comps, or any of mix these or other important numbers?

Thanks!

[Steven Leigh]

@Ryan W. It's a hotly disputed topic.

Some say wholesalers need to be experts in valuation, and need to know how to do really accurate repair cost estimates down to the board, etc.

I actually go the other way. I make sure my numbers are tight on my end and just go with a broader, blanket repair cost based on square footage and condition. I document all the repairs that need done, and pass that on to the buyers with a broad estimate, but it's up to them to do a walk through and do their own repair estimate. My buyers share this opinion and they always do their own walkthroughs and estimates. Why would they trust someone else anyway???

If I were buying a property, I definitely wouldn't trust someone else to make all of the repair estimates, unless they worked for me. And every buyer's estimates will be different anyway. One rehabber will do a roof for $8k while another can do one for $5k because they have a roofer who cuts them volume deals, etc.

As a wholesaler my job is marketing for deals, providing good info to the buyers, and letting them decide on a price that works for them. 

Here's an example of how I do comps and repair values, which I got from Sean Terry. It makes it easy to estimate all the numbers in about 10 minutes or so and then you can modify your repair estimate once you've seen the condition of the house.

https://www.youtube.com/watch?v=Cqgz5OpqvNU