All Forum Posts by: Paul Amegatcher

Whats the ARV? Not what is sold for 8 or 9 years ago. What will it sell for fixed up today? Once you know that number you can work backwards to a true offer.

Let's assume the home is worth $335K and it needs $80K in renovations. Lets also assume your investor that wants to tackle this big a rehab requires 100K in gross profit. So you MAO before your wholesale fee will be:

$335K-100K-80K= $155K before wholesale fee.

Now subtract your wholesale fee of $10K and your max offer to this seller will be $145K.  

I would not make an offer without getting a true comp of the ARV. You can use Redfin.com or Zillow for free. If not you can always contact a realtor and have them pull true comps for you. Good luck.

Paul Amegatcher

redfin.com has good info on recent solds and they can be downloaded in CSV form.

Use findtheseller. com if you are only doing one deal.  if you plan on doing multiple skip traces I will sign up for beenverified.com.  These services will help you to locate owners and relatives of owners.  

I second beenverified.  You get unlimited searches for $25/month its the cheapest skip tracing out there.

Driving for Dollar is another strategy if you have the time.  If not you can hire bird dogs to do the driving for you.  Make sure you test them out before you hire them.  

How do you come up with a wholesale price if you don't know the ARV or the cost of repairs? Wholesaling is an advanced strategy that most newbies are not well equipped for. This leads to wrong valuations or under estimated repairs? I disagree with @Account Closed stated most investors will do their own due diligence and will not trust your numbers.

Talk to a local real lawyer about creating a assignment contract for you or they can review a generic assignment contract and modify it to fit you local laws.  This is a simple thing and should cost no more than an hour of their time.  

The problem most investors fall into is trying to convince sellers to sell a property.  If sellers are truly motivated you will be providing a solution for their problem.  We all fall victim to trying to make deal where there is not deal to be had.  I would suggest you make her an offer for the property in the current as is condition without her finishing the rehab.  If she rejects it or feels it is too low then you move on to the next deal. There are plenty of deals to be had.  Do not try to make a deal where there is no deal.

@Nick Zocher Question: If he can't make his payments to the bank what makes you think he can make payments to you as a landlord. The best advice I received for another investor is to avoid lease backs. He stated that you purchase the property and move on with another exit strategy that does not involve a lease back.  As @Brian Gibbons stated lease backs are a can of worms you do not want to open.

@Steven Leigh Sounds like you were trying out the free version.  If you pay for the monthly service it is very fast.  I use beenverified as well.  It has been a great help in helping my finding vacant property owners.