Wholesale deal. Thoughts.

[Sean DuPre]

So I have my first wholesale deal. I have been working on it literally for two days after learning as much as I can about this business. Know while I know the stigma with rookie wholesalers isn’t all great right now. I actually respect the business and would like to present to my buyer this great deal so that is more of a win for them but nice for me as well. The property here in California needs a complete fix. Right now it is worth 165k and needs maybe 40k in rehab for it to hit retail values at 305k. The house right next to it is o sale for 305k so this can be right over or under. I want to know a good asking price on my first deal? I don’t wanna be “that” guy trying to get over because I know I will find good deals for these buyers since inventory is really low right now. But I know the numbers are here.

Would love your guys help here!

[Erik W.]

@Sean DuPre

Wholesaling is a tough art to master, and few get it right.  You are wise to be considerate of your Buyer, because if the deal doesn't "work" for them then you'll get nothing.  The guideline is "leave enough meat on the bone for everyone."

I would do as others have suggested and get actual comps.  FSBOs, "For Sale", etc. are not accurate enough usually.  This will help your Buyer understand they are getting a good deal.  

Where to find them? Realtors and Zillow (actual solds, not Zestimates) are my two best sources. I have a good relationship with several agents who will pull comps for me for a nominal fee, knowing that I will continue buying from them as I have in the past. It doesn't take them long with online MLS access to create a 1/2 mile radius, 90 days trailing sales report. 15 minutes of effort, tops, as long as you provide accurate information. Getting correct information is well worth your time and a small, one-time expense.

I have one question for you: how did you manage to find and negotiate your deal?  If your numbers are accurate, you're buying at 70% of market, which seems close to impossible in a hot market like Cali.  Inquiring minds want to know!