Originally posted by Matt C.:
@Paul Timmins Am I thinking correct when I read 65 cents on the dollar as being 65% of ARV? I find the idea of offering to pay a premium to a wholesaler interesting. In my mind, it might be just enough of a value add to get the attention of a seasoned wholesaler. One that might otherwise have no interest in dealing with a newbie. I wouldn't want to do it for every deal but to start it sounds workable. I want to get a deal or two under my belt. I need to make some profit but the experience is my primary objective. Curious to know what others think of offering to pay a premium to a wholesaler?
How many flips/rents have you done? 75% less repairs is really great in DFW right now there is no inventory so wholesalers will rightfully mark it up to what the market will pay. Rentals I see regularly go for 82% less repairs. Stop using this 70-65% jargon that you hear spouted here on the forum. Thats a good guideline but it all comes down to whats going on in your local market.
If you are expecting 65% less repairs, good luck...better start your OWN marketing campaign.
Remember either way your going to pay by either:
1) Wholesalers mark up
2) Marketing for your own deals (this is expensive upwards of $1,500 a month to regularly produce leads. Plus all the tire kickers you will have to deal with)
3) Competition premium on MLS
