Wholesaling! What to look for?!

[Tony Ardison]

Good morning everyone,

So yesterday I went on my first appointment to a seller’s house. It’s 2 homes altogether that are side by side to each other. One of the homes was in OK sale but the other one would probably need almost a complete gut job. I brought along with me a local contractor that I’ve started to build a relationship with. All three of us walked the 2 homes and talked a bit. I wanted to submit an offer and get my first deal but I didn’t because my contractor said he probably would pass on this one because the foundation was like something he’d never seen before. 2 rooms had concrete underneath and some didn’t. One room even had a crawl-under space.

ARV of both homes combined would've been around $140k when all set & done. Repairs would've been roughly $45-60k just from both of us eyeballing it. Square footage is about 1,000 sq. Ft. A piece. One is a 2 bed, 1 bath and the other is a 3 bed 1 bath. The homeowners want $99k for the 2 homes combined.

My question is, as a wholesaler, would you guys have given an offer on this? (I know this post has limited details)

And what do you normally look for in a home when doing a walk-thru?

Any & all advice is welcomed and sorry for the lengthy post.

[Ross Nussle]

Most areas are still going by the 70% minus repairs formula, unless you are in really hot markets like Dallas, Phoenix, Vegas, etc., where you can get away with wholesaling at 80% minus repairs. Based on the $140k ARV for both and $60k rehab, I would have offered $38k for the package deal. $99k is asking way too much for the properties, based on the information given in this post. My 2 cents.