How to Analyze a Wholesale Deal in Under 5 Minutes

Speed Kills in Wholesaling — In a Good Way

In wholesaling, the fastest investor wins. When a motivated seller calls, you need to evaluate the deal and make a decision quickly. Spending three days running numbers means someone else already has the contract.

Here's the 5-minute framework that top wholesalers use to screen deals fast.

Minute 1: Identify the Property Basics

Get these details from the seller or your data:

• Address — exact location
• Bedrooms / Bathrooms — bedroom and bathroom count
• Square footage — approximate is fine
• Condition — on a scale of 1-10, how would the seller rate it?
• What do they want for it? — their asking price (if they have one)

Minute 2: Pull Quick Comps

Open your comp tool (Zillow, Redfin, PropStream, or MLS) and find 2-3 recent sales within 0.5 miles that are similar in size and condition (after renovation). Focus on:

• Renovated sales only
• Sold within last 6 months
• Similar bed/bath count

Average those sale prices. That's your rough ARV.

Minute 3: Estimate Repairs

You don't need a contractor quote at this stage. Use these rough per-square-foot estimates:

• Light rehab (cosmetic — paint, carpet, fixtures): $15-$25/sq ft
• Medium rehab (kitchen, bathrooms, some systems): $30-$45/sq ft
• Heavy rehab (full gut, structural, new systems): $50-$75/sq ft

For a 1,500 sq ft house needing a medium rehab: 1,500 x $35 = $52,500 estimated repairs

Minute 4: Run the MAO Formula

MAO = ARV x 70% - Repairs - Your Fee

Example:

• ARV: $200,000
• Repairs: $52,500
• Your Fee: $15,000

MAO = $200,000 x 0.70 - $52,500 - $15,000 = $72,500

If the seller wants $70,000, you have a deal. If they want $120,000, it's probably not going to work.

Minute 5: Make the Decision

Ask yourself three questions:

1. Is there enough spread? You need at least $10,000 between your contract price and what a buyer will pay.
2. Will buyers want this? Is it in a desirable area? Is the price point right for your buyers?
3. Can this close? Are there title issues, liens, or other complications that could kill the deal?

If the answer is yes to all three, move to the next step: make the offer.

The Quick-Screen Checklist

Use this to pass or fail deals in seconds:

• ARV clearly supportable by comps? Yes / No
• Seller price below 75% of ARV? Yes / No
• Repairs under 30% of ARV? Yes / No
• Clear title likely? Yes / No
• You can assign for $10K+ fee? Yes / No

If any answer is "No," either dig deeper or move on.

When to Dig Deeper

Not every deal is a quick yes or no. Dig deeper when:

• The ARV is borderline — spend extra time on comps
• The seller has a unique situation (divorce, probate, estate)
• The property is unusual (large lot, mixed-use, multi-family)
• You're in a new market and don't know pricing well

Common Red Flags

• Seller owes more than the property is worth — unless it's a short sale, walk away
• Title issues — liens, judgments, or clouded title can kill deals
• Environmental concerns — underground tanks, asbestos, lead paint in some states
• Structural damage — foundation issues can make repairs unpredictable

The Bottom Line

You don't need to spend hours analyzing every lead. Most deals are either obviously good or obviously bad. The 5-minute framework helps you quickly identify the 10% of leads worth pursuing and move on from the 90% that aren't.