How to Analyze a Wholesale Deal in Under 60 Seconds
In wholesaling, speed kills — in a good way. The investor who can evaluate a deal fastest gets it under contract first.
But speed without accuracy is just expensive guessing. Here's a framework for rapid, reliable deal analysis.
The 60-Second Deal Screen
Step 1: ARV Check (15 seconds)
Paste the address into ARV Analyzer. Within seconds you get:
- After Repair Value based on actual sold comps
- Confidence score (0-100) telling you how reliable the ARV is
- Number of comparable sales found
If the confidence score is below 50, the ARV is unreliable — proceed with caution or pass.
Step 2: Rehab Tier (10 seconds)
Based on property age and photos, classify the rehab:
- Cosmetic ($15-25/sqft): Dated but functional
- Moderate ($30-50/sqft): Needs kitchens, baths, systems
- Gut ($60-100/sqft): Down to studs
Multiply by square footage for your repair estimate.
Step 3: MAO Calculation (10 seconds)
ARV Analyzer calculates MAO automatically:
MAO = ARV − Repairs − 25% Profit − 5% Closing − 3% Holding
This is the maximum your end buyer should pay.
Step 4: Wholesale Fee Check (10 seconds)
Subtract your assignment fee (typically $10,000-25,000) from the MAO:
Your Max Offer = End Buyer's MAO − Your Assignment Fee
If the seller's asking price is at or below your max offer, you have a deal.
Step 5: Deal Score (15 seconds)
Check the overall deal score (0-10). A score of 7+ means strong fundamentals. Below 5, walk away unless you have a specific edge.
What Makes a Great Wholesale Deal
- Spread: At least $20,000 between your contract price and end buyer's MAO
- ARV confidence: 70+ score means reliable comps
- Clean title: No liens, judgments, or probate complications
- Motivated seller: Distressed situation, not just testing the market
- Multiple exits: Deal works for flippers AND rental investors
Common Wholesale Mistakes
- Overestimating ARV to make the numbers work
- Underestimating rehab by one tier (calling a moderate rehab cosmetic)
- Not leaving enough room for the end buyer's profit
- Locking up deals without an assignment clause
The best wholesalers aren't the best negotiators — they're the best analysts. When you can evaluate 50 deals a day and cherry-pick the top 3, you'll always have inventory.