All Forum Posts by: Brandon B.

@Brent Coombs not at all. I'm saying in my GF's example she's still making great money buying houses at 75% ARV. So why wouldn't a wholesaler buy those same houses she's buying, maybe at 70% ARV and still make a good fee? From what I'm hearing the 70% rule is very flexible and not really a great tool on upper end properties.

So it seems the standard formula to determine the appropriate best offer price is ARV x 70% - rehab costs - fee. Now this all makes sense and if you can get properties that fit into this formula you will definitely make money. But I think you can still make great money stretching these numbers quite a bit.

My GF is a rehabber/agent and has been doing it for years and I've analyzed some of her best properties and she usually gets them for 75% ARV. Recent example she bought a house for $338k with an ARV of $450k, needs about $40k in rehab. She's still gonna make good money on the house even though it's WAY out of the parameters of the formula. I would need to buy this same house for $265k for it to be a good wholesale deal following the industry standard formula. Now she is an agent so is gonna save $13k in commissions selling it and has the cash in the bank so there is no hard money interest. Maybe that accounts for the difference?

So does this mean there are wholesale deals out there that people are letting go because they don't fit the formula exactly? How often are you wholesalers out there buying stuff at 70% of ARV regardless of rehab costs and still making money?

So I'm wondering if there are any wholesalers out there that are also agents and if you get a call on a "I buy houses" ad and the people want too much for their property, how often are you able to "convert" them to a listing?  Seems like a pretty sweet deal.  You have a seller on the line.  If they are not motivated, change up your pitch from "I can get you cash fast" to "I can get you top dollar".  You are solving whatever problem they have.

My GF is a real estate agent and rehabber. Her challenge is always getting good properties obviously. I have always been interested in real estate and thought wholesaling would compliment her business nicely. I was telling her I need to build my buyers list so when a property comes along I have someone to dump it to. Obviously she would be my target customer and would have first dibs. But she said why not just list it on MLS as "cash only/investor only"? She said she has alerts set up on mls and gets emailed the minute a new listing pops up that matches her criteria. This seems so obvious to me so why is everyone stressing building a buyers list? Thanks!