Wholesaling in California

[Sean DuPre]

Hello Everyone, 

I am new to the wholesaling that has been going on. Looking to close my first deal really soon. The thing that is most confusing to me right are the wide variety of numbers in California ....northern preferably , how can I get a better idea on numbers that "make sense" in the California area; places like Georgia and Idaho have numbers that easiy make sense but California numbers seem to be all over the place and really looking to have numbers that just make sense to my cash buyers. Man, any information from anyone on this bigger pockets forum would be extremely helpful guys! 

[Will Barnard]

Sean, I feel you are putting the cart before the horse with your comments. How can you be expecting to close on your first wholesale deal soon if you don't understand the numbers? The numbers are just about everything in wholesaling. This is not intended to discourage you but to open your eyes to the fact that education on each strategy is of vital importance before going out looking for deals.

Numbers in Nor Cal are not much different than anywhere else other than likely adding another zero to them. The process and the percentages of those numbers are what matters. You need to know how to run and evaluate comparable sales in your local market, you need to know your local market conditions including, but not limited to average DOM, amount of solds vs pendings vs actives and amount of closed sales from the previous 8 quarters to get a good idea of where your market is and where it is likely going.

Finding real cash buyers (also part of this equation) is the easy part, finding the real deal with a real spread for a cash buyer is the difficult side of the equation and you only get there by knowing how to properly evaluate ARV's and rehab costs. This takes time and practice and more practice.

DOM=days on market; ARV=after repair value, pendings=listings that are under contract and in escrow but not sold yet.