All Forum Posts by: Kelsen J.

Hi Robert,

Thanks for responding! Good points!

In response to your question, I found the comps by matching info about the house to other houses in the area. I chose 5 houses that have similar sq footage, # of bed, baths, and lot size. The houses were all built around the same period btw 1900-1905 and all within 0.53 miles. One of the houses is actually on the same block. All 5 of them were sold this year.

I definitely agree with you on the estimated repairs! I think that is probably one of the things that I find hard to understand because I don't know anything about rehab costs. I have seen videos online about how to estimate rehab costs but I definitely want to see the property with my own eyes.

The owner seems like a motivated seller. The property is vacant and I noticed that every year for the past 4 years the owner has listed and re-listed the property repeatedly. This leads me to believe that their trying to get rid of it. I'm not sure why its still vacant. That's a good question!

Hi BP,

My name is Kelsen and I'm new to wholesaling. I haven't done my first transaction yet but I have been reading, listening to BP podcasts and watching videos from investors. I did some research and I found a vacant property in DC. I tested out the comps myself through Redfin. (I will talk to a realtor soon to get the official MLS info) When I ran the comps I came up with:

ARV of $518,000 x 65% = $336,700

Estimated Repairs = $15,000 (house is in Good condition according to DC Tax Assessor)

Owner's Delinquent Taxes = $8,470

My Purchase Price = $313,230

Then Deduct my Assignment Fee = $10,000

Investor Purchase Price = $323,230

I deducted the owner's delinquent taxes from my purchase price. Is this a good deal?

*Homes in the area sell for 285k to $685K

*Prior to running comp, Redfin said that the home is valued at $483,800.

I checked other sites also:

DC Taxable Assessment: $338,770

Zillow: $356,879

Realtor.com: $433,000

I know its alot of info but I'm trying to understand the wholesaling process. Any insight would be appreciated! Thanks!

Thanks for the info guys!!

Is there any Newbie wholesalers in the DC area interested in meeting? I am also a newbie and I would like to meet others like myself to share info and experiences.

Thanks Rafael! I'll definitely try to team up with another wholesaler before doing it on my own.

Hi BP Members,

I'm a newbie investor interested in Wholesaling properties in the DMV area. I've read that vacant houses are really good for wholesale deals. I found a list of vacant & blighted properties in DC. When I search through the DC real property assessment database I discovered that alot of the vacant homeowners have $10,000+ in back taxes. Is that a bad thing? Is DC a bad market for wholesaling? Should I search for vacant properties somewhere else?

I've heard that you can structure the contract so that the cash buyer (investor) pays the back taxes. Would investors be willing to cover that much in back taxes?

I'm confused on this matter. Any insight will help. Thanks!

Hi BP Members,

I'm a newbie investor interested in Wholesaling properties in the DMV area. I've read that vacant houses are really good for wholesale deals. I found a list of vacant & blighted properties in DC. When I search through the DC real property assessment database I discovered that alot of the vacant homeowners have $10,000+ in back taxes. Is that a bad thing? Is DC a bad market for wholesaling? Should I search for vacant properties somewhere else?

I've heard that you can structure the contract so that the cash buyer (investor) pays the back taxes. Would investors be willing to cover that much in back taxes?

I'm confused on this matter. Any insight will help. Thanks!