All Forum Posts by: Michael Nicholson

I think I found something. EDDM mailing through the post office. only costs 15 cents per mail piece as opposed to buying a stamp for 47 cents.

Technically you do not need a real estate license to wholesale, but there are some areas of the country where the local governments are cracking down on wholesalers. Talk to Brian Gibbons on here. Also talk to Sharon Vornholt. There is actually a huge debate in one of the forums on the legality of wholesaling without a license.

There is a way to protect yourself on this by doing a double closing, whereas you take title to the property and then you immediately sell it to your cash buyer in the form of a second closing. Check out BP Podcast 12 with Sharon Vornholt for more real world information on doing wholesaling through double closings.

I would also check out this blog on wholesaling from bigger pockets:

https://www.biggerpockets.com/renewsblog/2015/01/3...

the last one mentioned seems to be a like for like comp...depends on how far away from the property it is and what style it is. Also, is it stick built or brick? 

Also, how big are the lots compared to the property you are looking at?

Lastly, those three properties have a big difference in the price per square foot. I would say 240000 is way too high an estimate of ARV. Your first property comp sold for 308$ per sq ft, the second 213.68 per sq ft, and the third one 236.61 per sqft. I almost bet that the first one had a bigger lot and that's why the price was higher. The other two must have similar size lots to each other.

If you were to average the last two comp's $per sqft, you would get 222.65 per sq ft @ 778sqft=ARV 173,217.81

That's the way I generally do it. I am new too so I don't know if it's right, but that's what I do. Redfin is a great resource because you can download everything to an excel spread sheet.

oh and i forgot to add...why not put it up here and post the numbers and ask other people's opinions on your deal...you might end up finding some cash buyers, and most definitely you will learn more about what constitutes a "deal".

local reia meetings and craigslist. if you have deals, share with those groups and you will quickly find cash buyers, if you really do have a deal.

Good luck!

Have you checked any comps in the area to get a better idea of what the ARV is? I have seen a few others advise this, but try to look for sales within the last 3 to 6 months within the same subdivision or street, that has a similar style/set up, similar sq footage plus or minus 20 %.

Next, I would ask the gentleman if you can see the property to estimate repair costs. I would try to bring a contractor along with me so i could get his quote on what the repair costs might be.

Lastly, what made you chose 60% of ARV? Is that your criteria? Will you be wholesaling this or fixing it up and flipping it? The % of ARV should really depend on the criteria of your buyer and what they are looking to do; fix n flip or buy and hold. A buy and hold investor can go in a little higher on the % to ARV because they are looking for cash flow, appreciation, debt pay down, etc.

And don't forget closing costs! I have found that the bank of america closing calculator is helpful. just remove the bank financing part of it if you are going to be using a cash buyer or substitute the hard money lenders fees in for the banks closing costs part of that calculator.

Lastly, if you are wholesaling, do not forget your piece of the pie. As long as your investor's criteria are met, your numbers are good and accurate, and you have left yourself some room, you need to plan for that piece of it as well.

that's the million dollar question! I am still trying to figure that out myself. anytime anyone else asks that question in the forums, everyone usually points that person to J Scott's book on estimating repair costs which comes as a companion book to his book on flipping houses if you buy it in the books section, under the education tab on this website.

I am going to do that eventually, but haven't done that as of yet.

Wow, that's amazing! Thanks for sharing your story!

found this post. at the bottom of the post is the guys questionnaire.

https://www.biggerpockets.com/blogs/5885/50083-building-a-marketing-machine-part-4d-direct-mail

found this post and it does have a seller questionnaire at the bottom for calls..maybe you could modify it to fit your needs?

https://www.biggerpockets.com/blogs/5885/50083-building-a-marketing-machine-part-4d-direct-mail