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How to Sell a Wholesale Property to Us * No Repairs Necessary*

If you have a property that you would like to wholesale to us, we require the following:
 
1. Comps for the after repair value (From a subject to repair appraisal)
2. Rehab list from a professional with price of repairs
3. Our cost (what amount are you selling to us for)
4. Copy of original contract, if being assigned to us
5. Potential rent if house is a rental
6. Recent pictures, both internal and external

Calculating Our Maximum Allowable Offer (MAO)

Maximum Allowable Offer 70% RULE - ARV x 0.7 (70%) – Rehab = MAO


Remember that we are wholesalers. This means that we have to sell at 70% of the ARV. That 70% ARV needs to include the cost of the house, rehab cost, our wholesale profit, and points and closing cost. Anything below that offer will be your profit.
 
Example 1:

$600K ARV house that needs $100K in rehab

$600K * 0.7 = 420K

$420K – $100K = $320K Maximum Allowable Offer (MAO)


Example 2:
This is an example of where our numbers need to be. Depending on the area and other due diligence, we may have to go below 70%.

ARV $100,000
70% $70,000
Less Rehab -$20,000
Less Taxes, Insurance and Attorneys Fees
 -$2,000
Less points for hard money (5% on 70K) -$3,500
Less our wholesale profit                       -approximately 10% of ARV
We will buy at a cost of                  $34,500
 
                                                                                     
You would need to negotiate a lower price for your profit or we can Joint Venture at 50/50

Please do not submit a property until you have already negotiated the required discount.

Finding the After-Repaired Value (ARV)

Use valid comps from your investor-friendly agent.  (At least 3-5 preferred).


Partners’ criteria:
  • Within 0.5 miles
  • Similar Style
  • Same # Bedrooms
  • Same # Baths
  • +/- 200 sq ft
  • +/- 10 years in age
  • Comps from last 3 months
  • **Adjustments made for differentials

Please allow 5-10 days for us to do our own due diligence as is required before accepting any property. Just because a property meets the above criteria does not necessarily mean that it is a good deal. Many factors come into play when analyzing property and we do not want you or us to make a bad investment. To sell a property email our closing department at wholesale [at] sellusyourhouse.net and we will be glad to help you in anyway we can.

Thank You

The SellUsYourHouse.Net Team

Remember, if it works with our numbers, that is all we care about.

Any difference you negotiate goes to YOU!