How to Analyze a Wholesale Deal in Real Estate
1h 12mBeginner2019-04-19
Authors
Symon He
Real Estate Investor, Broker, and Consultant
Course details
Discover how to evaluate a real estate wholesaling deal—that is, a deal in which you put property under contract and then resell it to other investors. In this course, instructor Symon He shows beginners with little (or no) real estate experience how to calculate and interpret the most important numbers when analyzing wholesaling deals. Symon covers a variety of topics, including how to leverage techniques like the 70% rule and the fixed costs method and use a custom-built wholesaling calculator to analyze deals. Plus, he shares tips for making a persuasive pitch to potential investor buyers.
Learning objectives
Name the formula used to calculate the MAO from the AVR.
Summarize the 70% rule.
Differentiate between the rehab estimator, ARV, and MAO calculator worksheets.
Describe the factors in an AVR estimate.
Cite the formulas that are helpful when pitching to a flip investor buyer.
Explain the difference between recently sold comps and rental comps.
Learning objectives
Name the formula used to calculate the MAO from the AVR.
Summarize the 70% rule.
Differentiate between the rehab estimator, ARV, and MAO calculator worksheets.
Describe the factors in an AVR estimate.
Cite the formulas that are helpful when pitching to a flip investor buyer.
Explain the difference between recently sold comps and rental comps.
Skills covered
Small Business FinanceSmall Business and EntrepreneurshipMicrosoft ExcelFinance and AccountingMicrosoftOne-Off
Concepts
0. Introduction
- 01 - Course introduction and overview
- 02 - What is wholesaling
1. Measures and Methods
- 03 - The after repair value (ARV)
- 04 - The maximum allowable offer (MAO)
- 05 - The formula - From ARV to MAO
- 06 - The 70 rule
- 07 - The fixed costs method
2. The Wholesaling Deal Calculator
- 08 - The wholesaling calculator overview
- 09 - The rehab estimator worksheet
- 10 - The ARV calculator worksheet, part 1
- 11 - The ARV calculator worksheet, part 2
- 12 - The ARV calculator worksheet, part 3
- 13 - The MAO calculator worksheet, part 1
- 14 - The MAO calculator worksheet, part 2
3. Pitching Investor Buyers
- 15 - Pitching to a flip investor buyer
- 16 - Pitching to a buy and hold investor buyer
Conclusion
- 17 - Congratulations