Every wholesale deal stands or falls on three numbers: the after-repair value, the true repair cost, and your all-in acquisition price. Verify those three and the rest is arithmetic. Here is the professional 15-minute screen, in order.
KEY FACTS FROM THIS GUIDE
- Earnest money belongs in title company escrow, never a personal account
- Assignment fees are paid on the settlement statement, or they are not legitimate
- Texas Prop. Code 5.086 requires disclosure of equitable-interest assignments
- An owner title policy covers forgeries, missed liens and chain-of-title defects
Minute 1 to 5: verify the ARV yourself
Never accept a stated ARV. Pull renovated comparable sales within one mile, sold in the last 90 to 180 days, same bed count within one, similar square footage within 20 percent. Three solid comps beat ten stretched ones. If the wholesaler will not show their comps, that is your answer already.
Minute 5 to 10: pressure-test the repair number
A line-item scope can be checked; a round number cannot. Sanity anchors for a full cosmetic renovation: roughly $25 to $40 per square foot. Roof, HVAC, foundation and rewire are the four line items that break budgets, confirm each is either included or genuinely unnecessary.
Audit us with the 3-question check, then decide. Written numbers, licensed title company closings, zero pressure.
Minute 10 to 14: run the maximum offer formula
Classic screen: 70 percent of ARV minus repairs equals your maximum all-in for a flip. On a $200,000 ARV with $35,000 of repairs, that is $105,000 including the assignment fee. Adjust the percentage for your market and financing costs, but never negotiate against your own math.
Minute 14 to 15: check the exit
Days-on-market for renovated houses in that zip tells you how fast your capital comes back. Under 30 days: healthy. Over 60: price your risk in. This number is free on any listing portal.
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