Charles NoonanPresident, Landbank University · Real Estate Developer & Instructor

Wholesaling can HELP you make MONEY and also HELP THE SELLER? #incomesource #wholesale

6 May 2025 · 1 min

Watch on YouTube

0:54

A short YouTube conversation (Charles Noonan) about real estate wholesaling focused on balancing profit with helping distressed sellers. Speakers discuss a seller scenario ('Steve') with an inherited, paid-off but neglected $200,000 house, tax delinquency and repair needs, and outline a basic offer-calculation approach using ARV minus 30% and estimated repairs.

Chapters

You got Steve, who just got his grandmother's house. She'd been working her whole life, paid the house off. It's a little bit neglected. Houses worth $200,000. Taxes are behind or whatever. Everything was good, working condition, 200,000. You come in, Steve struggling, six months behind taxes. The roof is leaking. It's in your best interest to get the house from Steve as low as possible. Is that right?
Let me say this. I don't always want to make the most amount of money on the deal. At the end of the day, it's about helping my, my seller, right? If I don't help Steve, the roof going caving. If I don't help Steve, the city is going to take the property for tax delinquency and Steve is going to walk away with nothing. And so my goal is always to see how I can help Steve out. How can I help the seller?
You got Steve on the phone. It's worth 200. It only needs 20. How much are you offering Steve?
So this is what I do. There's a formula. Start with the ARV, which is 200,000. I take that number and I multiply that number by 30%. The reason I multiply that number by 30%. If for whatever reason we're going to finance their property or I need a loan to purchase their property, I need to make sure that I'm accounting for any type of fees, interest. So that's why I take the 30, 30% off. And from that, I'm going to take off the $20,000 for estimated repairs.
Something got to go to you and.
Then exactly, say 20. So now we're at $100,000. That's going to be the offer to see.