How to Analyze a Wholesale Deal

Calculate your maximum allowable offer easily
Written by Lisa Greene
Updated 3 months ago

In this article:

Adding property details
Viewing rental property analysis report

As a wholesaler, you need to calculate what to offer - not overpaying for the contract or giving too low of offers either, while the investor stays profitable. Let’s see how Zilculator can help you with wholesale property analysis.

Adding property details

1. Create a new property

Navigate to the Properties page and click the “New Property” button.

Our wholesale property form is created as an easy to use step-by-step wizard and has four sections: Property information, Purchase information, Rehab/Rental information, and Resale information. Next, we will cover each step separately.

Select the Wholesale option as an investment strategy. Next, you have to decide whether you are going to analyze a scenario where your buyer is a flipper or a buy and hold investor who is going to rent the property. It is important to evaluate the deal from your buyer’s perspective and make it profitable for them. You can also create two versions and market the property to both types of investors. For this tutorial, we will assume that the property will be sold to a flipper.

2. Add or load basic property information

In the first step of the property wizard, you can either copy an existing property, load property details from MLS®, or enter details on your own. In this guide, we will add details manually, but you can click on the links above to learn more about the other options.

Next, add details about the property, including a report title, property type, address, and photos. Make sure to fill in the required fields with an orange border, such as a full address.

Note: For properties located in the US, Zilculator will automatically search and attempt to load details from public records and Zillow® after you input the property address.

These are the most important fields to fill in:

  • Private checkbox: By default, all property reports are public. You can share them online and Google can search and access them. A private report is accessible only to its author.
  • Report title: This will be the name of the property used throughout our app. If left blank, a property address is used by default. You can, however, use more descriptive names, like "3/1 SFR in North Topeka".
  • Address: Zilculator’s integration with Google Maps makes it easier to input an address. Start typing and then select the correct address from the drop-down menu. Zilculator will automatically check public records and Zillow® for additional property details, plus it will load Streetview photos from Google Maps. If you are analyzing an apartment or condominium, make sure to input a Unit # into Address line 2.
  • Property type: Select one of the available options. Note: Multifamily and Commercial property analysis is only available in the paid plans. 
  • More details: Click on the More details button and further facts about the property and Summary info and Description. All these details will make the final report more rich and detailed.
  • Photos: Click to select one or more of the automatically loaded photos or upload your own (drag and drop).

3. Add the Purchase information

Add details, such as the after-repair value of the property, financing, and rehab/construction costs. First, add an ARV, which is a required and necessary field for the calculation of your Maximum Allowable Offer. 

Here is more information about each input field:

  • Currency: You can change $ to your currency symbol here. This currency will be used for the entire report.
  • After repair value: The estimated market value of the property after any rehab work is complete. It’s also a required field.

Note: Click the Estimate ARV button to open the CMA module that can assist you with figuring out the accurate after repair value using recent sales comps in the area. See a guide on How to calculate accurate After Repair Value to learn more.

  • Wholesale assignment fee: How much profit do you want to make on this deal? Remember that by marking up your fee too much, you can ruin the deal!
  • Flipper’s profit & Flipper’s ROI: How much profit will you leave for your end buyer to make? Estimate at least $20,000 OR enter flipper's ROI as a percentage in the next field. Only one of the fields can be used, the other will be disabled. If you want to switch between them, you must clear the field first.
  • Closing costs: These are all costs and fees your buyer is going to pay while purchasing the property, aka purchase costs. Examples include loan points, escrow fees, and property inspection fees. You can enter a total amount, or click the Expand costs button and enter a detailed list of each purchase cost separately.

Note: If you have selected Buy and hold investor as your buyer on the previous screen, you will be asked to input a contract price, for which you can get the property under contract. In the next step, you will enter the Rental information. Zilculator will then calculate your investor’s profit based on these values. 

If you expect that your buyer is going to use financing to purchase this property, click the Add loan button. You can add as many loans as you need. The loan type can be interest-only or amortized, and you can select to finance the ARV, purchase price, repairs or even specific amount with the loan. Add a label for the loan to display in the property report later.

6. Enter the Rehab Information 

In this section, you can enter the estimated repair costs and monthly holding costs.

Although it is possible to enter the repair cost lump sum, you might want to break down the rehab budget. Click the Expand costs button and use the common categories listed, or add your own costs by clicking the Other costs button. There are helpful popovers available when you click in each field.

Next, customize the recurring holding costs your buyer is going to have while renovating this property. You can enter an estimated total monthly amount or itemize all holding costs one at a time:

7. Set Resale Information and Holding Period

Next, enter the Holding Period - the amount of time you anticipate it will take to finish the rehab and, then, sell the property.

Finally, enter the projected selling costs and sale commission as a percentage of the resale price.

When finished, click the Analyze button at the bottom of the page to save the property and view the analysis report.

  

 

Viewing wholesale property analysis report 

Now that you have added the property details, you can see the wholesale property analysis report. Each report consists of different sections that can be enabled or disabled. We will walk you through the main areas of the report and the options here.

Note: If you have a paid plan, you can add branding (logo, phone number, business address, etc.) to your reports. Learn more about branding here.

At the top of the report, you will see the following menu:

  • Edit: This option will bring you back to the property form where you can change all of the property details.
  • Presets: You can select one of the predefined versions of the report: Summary report, Marketing report, Full report, and Lender report. You can also customize the report by toggling the sections you want hidden.
  • Preview: Click the Preview button to see the report as others will see it.
  • Save: It’s necessary to save the report if you have hidden or edited any sections.
  • Buyer’s report: Generate a buyer’s version of this report, which you can share with your buyer’s list. The buyer’s reports won’t show your wholesale assignment fee.
  • Share: You can easily share your report, though we recommend sharing only the buyer’s report with your buyers.
  • Download a PDF report: Generate and download a professional PDF report. It takes only a few seconds. You can also Add your branding or remove Zilculator’s logo (new feature).
  • Publish your report: We recommend to publish the Buyer’s report only. With a paid membership, you can publish your report to our public Marketplace and also to your Property inventory page (Premium feature). Learn how to publish a property report here.

The comprehensive wholesale report (see the full demo report here) consists of different sections depending on whether you are analyzing a flip or buy and hold scenario. The sections can be made hidden or visible by clicking the appropriate toggle button.

The following is the list of all sections with a short description for each:

  • Executive Summary: highlights the most important metrics, ratios, and project cost data together with a photo slider. It shows the investment divided into an A-B Investment (your wholesale part) and B-C Investment (flipper’s part). 
  • Property Description: shows the longer description field and further property details and map. Property listing history is displayed here as well when available.
  • Sales History: lets you load the sales history of the property and owner’s information, such as name, address, and mortgages (subjected to availability).
  • Comparative Market Analysis: displays selected recent comparable sales. Click Add comps to load the CMA module. Learn more about how to create a CMA.
  • Rehab Estimates: if you broke down the repair costs into categories in the property form, an easy-to-read table of repair costs will be displayed.
  • Financial Analysis: shows financial breakdown, timeline assumptions and investment return ratios, such as return on investment, internal rate of return and gross rehab profit.
  • Financing Overview: if you have selected financing for the deal, this section will show details of each loan, calculated monthly payments and a Cash vs. Leverage chart.
  • Cash Flow Forecast: displays projected expenses, mortgage payments, and cash flow for all the months of the holding period. Scroll the data table left and right to view information for additional years.
  • Resale Analysis: shows the sale proceeds breakdown, including capital partner’s share if applicable.
  • Lender Report: shows a summary of each loan from Lender’s perspective, including the Lender income and return on investment. This section is great for Private lender funding proposals.
  • Photos

Note: Hover over the underlined terms to view their description in a popover.

What's next?

Once you have added your property and are satisfied with the numbers, click the Buyer’s report button to generate a report that you can share with your buyer’s list. You can always find and edit the report on your Properties page. Here are more things you can do:

  • Analyze a rental property
  • Analyze a fix and flip property
  • Calculate accurate After Repair Value using recent sales comps and add a Comparative Market Analysis to your report
  • Duplicate this property to calculate alternative investment scenarios
  • Compare this property to other properties you have added or to alternative investment scenarios
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