Riko Love

🏠 ARV (After Repair Value) What the property will be worth after it’s fully fixed up. Used to calculate offers and profit. Example:If a house sells for $200k fixed up → ARV = $200,000. 💰 MAO (Maximum Allowable Offer) The MOST you should offer a seller while still leaving room for profit. Basic formula: ARV × 70% – Repairs = MAO This protects you from overpaying. 📐 70% Rule A quick rule wholesalers use so buyers can still make money. Example: ARV: $200,000 Repairs: $40,000 200k × .70 = 140k \\140k – 40k = $100k MAO You should try to get the deal under $100k. 📊 Comps (Comparable Sales) Recently sold properties similar to yours (same area, size, condition). Used to determine ARV. You want:• Same neighborhood• Similar beds/baths• Sold in last 3–6 months 🤝 JV (Joint Venture) When you partner with another wholesaler. Usually:• One brings the deal• One brings the buyer• You split the assignment fee Example: $10k profit → $5k / $5k. 📝 Assignment Fee Your profit for putting the deal together. Buyer pays this at closing. Also called:• Wholesale fee• Finder’s fee 🏷 Assignment Contract The agreement that transfers your purchase rights to the end buyer. This is how wholesalers get paid without buying the property. 🧾 Purchase Agreement Contract between you and the seller locking up the property. This is step ONE in wholesaling. 🏗 Repairs Estimated cost to fix the property. Includes:• Roof• HVAC• Electrical• Plumbing• Kitchen/bath• Paint/flooring Always overestimate repairs to stay safe. 🧠 Motivated Seller Someone who NEEDS to sell due to: • foreclosure• divorce• inheritance• tired landlord• vacant property• financial stress These are your BEST deals. 🔁 Follow-Up Contacting sellers multiple times over days/weeks/months. Most deals happen on FOLLOW UP. 🧑‍💼 Cash Buyer Investor who buys without bank financing. These are who you assign deals to. 🔑 Exit Strategy How you make money: • Assign• Double close• JV• Wholetail Always know your exit. 🛑 Earnest Money Deposit (EMD)