Wholesalers: Here Are My Requirements
Not a week goes by that I don’t get several emails or phone calls from wholesalers who want to know what types of deals I look for, where I like to buy, what kinds of houses I buy, etc. While most of that information can probably be gleaned from reading through this blog, I wanted to take the time to put together a more detailed list of the types of deals I look for, so I can just direct the wholesaler questions here…
If you’re a wholesaler, here is the information you’ll probably need:
Am I Looking For Deals?: Yes! I’m always looking for deals. And even if I weren’t looking for deals, I work with lots of other investors who are always looking for deals. If you have a deal, send it along and if it’s good, either I — or someone I know — will buy it.
Contact Info: If I’ve never worked with you, please don’t call me with deals. It’s not that I don’t want to talk to you, but now that I have two little kids, it’s not easy to find a lot of phone time. Once we’ve done a deal or two, you’ll be on my list to answer your calls. Until then, send me emails (including any potential deals) to email@example.com. I read every email I ever get, and will respond (though if it’s not a time sensitive deal, it may take me a bit).
Location: I mostly buy in Cobb County, Georgia, with most of my properties in Smyrna, Austell, Mableton and Marietta. I will consider deals outside this area, but the further away from this general vicinity, the better the deal has to be. Please don’t send me any marginal deals that are an hour away!
House Characteristics: While I’m sometimes willing to deviate from this list of characteristics (especially for a great deal), these are the types of houses I tend to buy:
- Built After 1978
- At least 3 bedrooms
- At least 2 full bathrooms
- Split Level, Traditional, Ranch Preferred, But Will Look At Any Style
To get an idea of the look of houses we buy, take a look at our HOUSE PICS.
Level of Rehab: It doesn’t matter! I’m always happy to do a quick paint-and-carpet job and I also don’t mind houses that have been (or need to be) torn down to the studs. I’m happy to deal with mold, water-proofing issues and/or foundation issues — though keep in mind that my purchase price will certainly take into account the cost of fixing these types of problems.
Price Range: While I’m happy to buy a deal in any price range if I’m confident it will sell and I can make a decent profit, you can get a pretty good idea of my typical price range for deals by taking a look at my RESULTS TO DATE page. It lists the Purchase Price and Sale Price of every house we’ve ever purchased.
Purchase Formula: You don’t have to guess if a deal meets my financial requirements or not. The formula I use to evaluate deals is pretty simple, and I discuss it in several places on this blog. But here is the overview: THE FLIP FORMULA. If you want to determine if deal is going to meet my criteria, use that formula, and assume my fixed costs are about $15K and my desired profit is about $15K. Based on those numbers, the ARV and the Estimated Rehab Costs, you should be able to determine about how much I will pay for a property.
Will I Partner With You Or Loan You Money: I will certainly consider it. If you have a great deal that you’d rather do yourself than to wholesale, I’m happy to discuss the possibility of partnering on the deal or loaning you money to do it yourself. Keep in mind that my decision to do either of these things is going to be predicated on a few things, including: how good of deal it is; where it’s located; what is your experience and/or what do you bring to the table?