Crunching Wholesale Numbers

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Hey everyone this is an excellent site filled with some very helpful info.

i just recently got into real estate investing. (have not landed a deal yet). i joined my local REIC,i have a copy of my city's(jacksonville fl) condemd list, studying RE investing books in the library and have been searching and searching for my first wholesale deal (it's only been a few weeks..told you i was new)
so i've also been on this website searching through all the post dealing with wholesaling, startup etc. and ran across ryan's link to all his post he made on different subjects. so my question is this ...one of his subjects is number crunching category is about the formula...now i understand his formula. but they all seem to pertain to someone purchasing for fixup and resale. are there any numbers to go by when trying to find wholesale deals? to be able to set an inverster up for the 70% rule. b/c the problem i've been running into is that i'm finding property but not cheap enough to wholesale.
hope this all makes since i bette finish this up before i continue to ramble..thanx in advance!!

[Ryan Webber]

70% rule minus your wholesaling fee. :D

Being a good wholesaler requires you to understand what your customers are looking for. Now the 70% isn't always applicable. Many rehabbers in my market will buy at 75% or even 80% minus repairs depending on the area. But sticking with 70% is always the safest way to go. In some of the slower markets the 70% rule might be too high. You need to know your market and your customers. Most newer rehabbers and even many experienced ones don't use hard fast rules like the 70% rule.

Another avenue for wholesalers and a more lucrative one is to find investors that are buying for rentals, owner carries, or lease options. These investors don't need the spread that a rehabber needs, and they normally will buy multiple properties from you. Most rehabbers will only be buying a house every couple months or even longer, but someone with money to burn who is looking for rentals can buy 4 or 5 a month.

The key is to learn your customers. Learn what they are looking for. Do they want $100 a month cash flow on something that's already rented or do they need at least $10,000 spread on an owner carry that needs only cosmetics? When you are looking at a property you can determine what you can sell it for to these investors, and then be able to figure your profit margin right then and there.