All Forum Posts by: David Salfer

Well as the rule of thumb goes, the idea is to sell the property to your buyer at 70% ARV less repairs estimate. So your purchase/offer price would have to be that price less your profit (wholesale fee).

So let's assume the ARV = 100,000, it needs $10,000 in repairs, and you want to make $10,000. The price to your buyer would be 100,000 x .70 = 70,000 - 10,000 = $60,000. Your offer to the seller would have to be (60K - 10K) = $50,000.

To the more experienced, please correct me if i'm wrong and if I'm missing anything.  Hope this helps.

I am in the midst of training right now. I attended the free intro late last year and was convinced that this would be a good way to get started. So I signed up at a cost of $40k (discounted from $48k ... hard to type that with a straight face). The first session was three days of intensive training in January that took place in a Sheraton hotel in Anaheim, CA. The principle instructor was extraordinary and we learned all the basics, in detail, of this business. The next training session was two days in February that they call "Boots on the Ground". It was a day of classroom training and a day of driving around in a 16 passenger van to various distressed properties with our instructor and a local Orange County investor friendly realtor. We walked through about six properties with our new rehab estimating sheets, taking notes and writing estimates based on the dollar amount of each kind of repair task that was needed. Most task estimates are based on the square footage times the cost of that task per sqft. Exceptions would be things like a complete kitchen or a new furnace, etc. We had about 20-30 minutes in each property. The next day was classroom time and we discussed what we saw and how we estimated the rehabs that were worth discussing. It was very eye-opening and instructive. Note that our instructor is not a part of the Chiniquy organization, but a contractor based in Utah with many years in the REI business. He was very knowledgeable. Next is four days in the San Diego area which I will attend in March. Following that at a yet unspecified date is two days in Las Vegas on the subject of asset protection. They will teach students how to incorporate (using an SCorp structure) your real estate company.

The thing that sold me on this program was the two years of access to a mentor. It's telephone access only, but it's still a warm, comfort blanket. As you can tell from the above info, I'm only half way through the training, but so far I'm pretty impressed with the amount of information dispensed here. I suspect much of the same info is available for free with BiggerPockets, but it's not that same as actually going out an doing the work, then having your work discussed in class. It's a truckload of money, yes, but it was worth it to me.