I have created this special page
for real estate wholesalers who
are looking to add me to their buyer's list. Here is a step by step
guide to help you understand my criteria and buying requirements.
Property - The Numbers
I will buy property that are
wholesale deals! Here are the numbers that I'm looking for in a
65% of ARV minus repair
That's it! Calculate the
wholesale price using this formula. It's simple. First you must
establish the After Repair Value (ARV) of the property. This is the
price the property will sell for to an end buyer who will pay full
retail price. Multiple this number by 65% then subtract the cost of
making the repairs and this is the price I will pay for your deal.
Here is an example of a deal
using the 65% of ARV minus repair costs formula.
After Repair Value - ARV
Let's say a single family
house that is in disrepair would fetch an owner occupant
buyer at a full retail price of $300,000 after it is fully
renovated. This is the After Repair Value (again, this is
called the ARV) of the property.
First multiply the ARV by
65%: $300,000 X 65% = $195,000.
Repair Costs / Rehab
Costs / Renovation Costs
The next step is to add
up the repair costs to rehab and fully renovate the
property. The goal is change the property from it's present
condition into a fully renovated home which will be required
in order to achieve the full retail price.
In this example let's say
the property is outdated and needs a total rehab. This will
include a new kitchen, new bathrooms, new flooring, and
painting. There are also some repairs to be made, such as
replacing broken windows, two doors, and a few pieces of
siding on the exterior. There is also some landscaping that
needs to be added to improve the curb appeal of the house.
Let's say in this example that the cost of doing all the
repairs and renovations totals $40,000.
Now subtract the cost of
repairs from the number calculated by multiplying the ARV by
65%: $195,000 - $40,000 = $155,000.
The Calculated Wholesale
This is the price I will
pay for this wholesale deal:
Wholesale Deals /
Assignment of Contract vs. Bird Dogging
When you contact me to present
your wholesale deal to me, please have the property under contract.
If I like your deal, I will pay you a fee to assign the purchase and
sale contract to me.
If you do not have the property
under contract yourself when you tell me about your deal, please be
prepared to explain to me what your role is in the transaction.
Please do not tell me you have the property under contract when in
fact you do not have it under contract.
If you are acting as a go-between
or bird dog for another investor who has it under contract, please
tell me right away. I will be glad to work with you if it's a deal
that interests me. But I cannot effectively do a transaction with
you if you tell me you have it under contract but then I find out
later you do not have it under contract. Doing this wastes time and
complicates what should otherwise be a smooth transaction.
Please provided me with the
property details when you present a wholesale deal to me. These
details must include the following:
Property Type (single
family, townhouse, condo, apt building, etc.)
Number of Bedrooms and
Sale Price (this should
include your assignment fee)
Estimated Cost of Repairs
with Scope of Work (detailed repair list)
Additionally, other property
details which may be helpful for me include the following if you
have this information:
Annual Property Tax
Foundation Type (slab,
crawl space, basement, etc.)
Parking (garage, carport,
Here are the locations I will buy
wholesale deals and the types of deals I'm looking for in various
Atlanta Area Rental
Property Wholesale Deals
Any property that would work
as a buy and hold cash flowing rental with a 12% cap rate.
I prefer single family houses outside the 285 perimeter
but will consider all types of property in any location on a
case by case basis.
I also have a group of
investors I work with who will buy cash flowing rentals, so if
I'm not interested, I may have another buyer for your deal.
North Metro Atlanta
These are the areas that I
will buy a wholesale rehab deal. These are properties that
usually need extensive renovations and repairs which gives me
the opportunity to create value and then resell for profit.
The areas I'm particularly
interested in to do a rehab deal are the following locations in
North Metro Atlanta:
Cherokee County - Canton,
Woodstock, Holly Springs, Ball Ground, Waleska
Cobb County - Marietta, Kennesaw, Smyrna
North Fulton County - Alpharetta, Roswell,
Sandy Springs, Atlanta
Paulding County - Dallas, Hiram
Dekalb County - Dunwoody,
Pickens County - Jasper
Yes, I will do deals in
Northern Virginia. I started investing in real estate in the
Washington, DC area and I have cash buyer investors on my team
who will buy great wholesale deals fast in Northern Virginia.
Real Estate Wholesalers
If you are new to wholesaling
real estate, I know you are attracted to the business because of the
potential to make good money by finding and wholesaling great deals.
I have collected assignment of
contract fees over the years on many deals and I am not hesitant to
pay an assignment fee to a wholesaler who has a great deal for me.
My hope is that you will be a
successful wholesaler, so please contact me right away when you have
a wholesale deal that matches my buying criteria outlined above.
When you have
a great deal that matches my criteria, we will make money together!