Wholesaling
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 13 years ago on . Most recent reply
Percentage of ARV minus Rehab Costs... Am I missing something?
We are "rookies" when it comes to Wholesaling, but have done almost 50 in-house rehabs. I have a couple Investors stating they want properties that are "60% of ARV minus Rehab Costs". We are extremely inclusive of expenses within our pro-forma, so our Rehab Estimate includes all Carrying Costs as well. I want to be sure we are being compared "apples to apples" against our competitors deals, so I thought I would ask if this is a standard practice out there.
Am I missing something?
Most Popular Reply
- Lender
- Los Angeles, CA
- 2,153
- Votes |
- 1,676
- Posts
Sorry Dustin Poole , I thought we were discussing ARV percentages.
Without going through the specific numbers, your format is outstanding and head and shoulders above all the "What are you waiting for? You gotta get in on this one" crap I get in my email each day. I know you know what I'm talking about. Most of the time I'm sent the price, ARV, and rehab cost with no substantiation.
You present a summary up front, justify the value through comps (which I assume are relevant and verifiable), and have an expense breakdown. I would add a photo of the house and perhaps a map showing the home and relative location of the comps. I usually like to see the actual MLS listing, thought I see you copied parts of it.
I also see you present numbers to the nearest dollar. Accuracy like this begs the question where did you get these, or how were they calculated, since they’re clearly not estimates. No need to answer here, but if it were me, I would ask you to explain.
My other questions would be where did you get the rehab costs and how do you know they’re accurate? Same for your finance terms. (Again, don't answer.)
I’m really just being picky here. Your presentation is exceptionally professional, comprehensive, and answers 99% of the questions I would normally ask. Have you used it yet? How has it worked for you?
Good job.
Jeff