Can I wholesale from Zillow?

[Christopher Kinney]

Hey guys!

I´m just getting started as a wholesaler and have been analyzing my first couple of deals. Currently, as a wholesaler I´ve been looking for Carry by Owner on Zillow as a start to practice with the numbers. Currently, I see a 4 bedroom and 1 bath for $100,000. Comps show an average of $129,000 with local rents about $1,250 (almost near 0 vacany rate - there is way much more demand than supply in the area. I had to camp out for several weeks before finding a place to rent). Monthly tax and insurance is estimated at $138/month. Is there a rule of thumb for conservatively estimating rehab costs? Also, starting out as a wholesaler, what´s the best honest fee I should ask? I value more practice and learning than money at this point. Any feedback would be greatly appreciated as any help starting out is gold. Thanks a bunch!

[Allan Smith]

A lot of questions in there.

If you find a lead on zillow you can wholesale it. You can wholesale MLS listings. But here's the thing. Make sure you have a killer deal and are thus bringing value. If you just put a listing/zillow lead under contract, then promote it as a wholesale deal with same exact terms plus a wholesale fee, you will just annoy people. Wholesaling these types of leads is dicey.

As for a fair wholesale fee, you're asking the wrong questions. Find out what the property is worth (run numbers and rehab estimates) to an investor, and negotiate down from that number. The farther down you get it under contract the bigger the fee.

As for estimating rehab costs, there's not really a rule of thumb, you just kinda have to get to know contractor costs in your area.