Nathan Payne argues that calculating after-repair value (ARV) ruins most wholesale deals. Instead of estimating comps and hoping buyers bite, focus on the seller's motivation and what problem you're solving. That's how you avoid trash deals.
You get it under contract and you hope that a seller will accept an offer that— after you do that, then you shop it around to your buyers, and then the buyers tell you if you have a good deal or you have a trash deal. Most of the time you have a trash deal because you followed the method and the numbers that just got you guessing. Now let me tell you something: the ARV is not what you think. You do not need to figure out the after-repair value of a property in order to wholesale efficiently and effectively. I know because I don't even care what the ARV of the property is. I care about the motivation of the seller. I care about their situation. And how to help them solve their problem. If you're guessing off of— even off of comps of what the ARV is worth, you could be wrong. You could see it completely differently from a buyer that's willing to buy the property. You could see it way too high.
Why Traditional Wholesaling Keeps Failing You (Use This Pre-Flip Method Instead)
