Don't Make Buyers Do All The Work

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Welcome To The Business Of Wholesaling Newsletter!

Every week, we’ll be sending you strategies, tactics, and tools used by successful wholesalers and we’ll cover any important market insights and news in the industry.

Here’s what we got for you today:

• Don't Make Buyers Do All The Work

• Underwriting: What's Actually Costing You Money

• The Art of Property Comps

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Don't Make Buyers Do All The Work

When marketing properties, providing ALL the details upfront makes a massive difference. DO NOT shortcut this.

Think about it - buyers have a stack of deals to look through so you have to hook them. They don't want to do all the initial research themselves. The less work they have to do on their end to make a decision, the better.

Always include clear photos (even if they're not professional), nearby comps (at least 6 within a half-mile and sold within the last year), and a solid ARV range. Some folks are now using "ARVE" to clarify it's an estimate.

Tailor your marketing to the right audience. A fix-and-flipper wants different information than a buy-and-hold investor. The more relevant info you provide upfront, the faster you'll sell your deal.

Underwriting: What's Actually Costing You Money

Poor underwriting costs the average investor $3,000-$5,000 per deal in time, resources, and missed opportunities.

And the three killer mistakes investors repeatedly make are:

1. Missing the mark on ARV (either too high or too low)

2. Overlooking major repair expenses

3. Not understanding what their end buyers actually want

Consider this scenario: an investor nearly overvalues a property by using comps from two streets over, not realizing those homes had significantly better school ratings. A conversation with a colleague reveals the discrepancy, saving them from a costly mistake.

Seasoned investors don't just rely on one source for comps either. They check PropStream, MLS, Zillow - everything. Each tool has blind spots, and comparing them has saved many deals from going sideways.

Do not be afraid to underwrite multiple times in a deal. Make the numbers work for you.

The Art of Property Comps

Pulling comps the right way involves much more than looking at similar bed/bath counts and square footage. There's a whole science to accurate comparison.

Take the example of a recent deal in Phoenix where the number of stories was significantly affecting value. Two-story homes in that neighborhood were selling for 5-8% less than single-stories because of the older demographic - most investors would miss that detail.

When pulling comps, consider:

• Year built

• Lot size

• Roof type

• Parking situation

• Pool/no pool

• Number of stories

A particularly useful strategy is checking the ratio of sold to active listings in the neighborhood. This provides a quick read on market health (absorption rate) and indicates whether more conservative numbers might be appropriate.

Thanks for reading this week’s issue of the Business of Wholesaling. 

We’ll be back next week with more marketing & sales strategies, market insights, and other advice you can use to grow your wholesaling business. 

See you next week.

Team Business of Wholesaling