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(877) 229-0499

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Rays the Roof Logo Rays the Roof Logo
(877) 229 0499

Reverse Wholesaling the Evolution of Wholesaling

Traditional Real Estate Wholesaling in a nutshell is similar to house flipping except the time frame is much shorter and no repairs are made to the home before the Wholesaler assigns the contract to a buyer. A real estate Wholesaler negotiates with a homeowner using a small earnest deposit then puts the home under contract to sell or assign. The Wholesaler then markets the home to their list of potential cash buyers. If an interested buyer is found the Wholesaler assigns the contract to that buyer and they proceed to closing. The problem with old school Wholesaling is that Wholesalers don't always find a buyer in their circle of investors. They must then continue to search for other buyers to purchase the home. That can turn into a lengthy process that does not always conclude within the home owners time line.

At Ray’s the Roof Real Estate Investments, we utilize Reverse Wholesaling. Matching our pool of investors purchasing criteria with motivated sellers properties is much more efficient and effective. We create swift transactions by only putting homes under contract that match our list of investors preferences, we can usually close sales within 10 - 21 days, with cash. Our objective is to help everyone who is selling or buying a home accomplish their goals, and feel confident that they have made the best decisions for themselves and their families. We adhere to strict due diligence techniques and procedures. If our formula determines the numbers work for everyone involved we proceed, if not we recalculate and offer the best possible solution. In all cases we leave no stone unturned in our efforts to provide our clients with exactly what they want. In most cases we come to mutually satisfactory conclusions, in very few cases we bow out gracefully.

The Benefits of Reverse Wholesaling

Top reasons Reverse Wholesaling is a great way to get started in Real Estate :

  • Only properties matching investors exact criteria are presented
  • Acquisitions and sales transactions are completed quickly
  • Short holding times reduce cost and eliminate risk
  • No handyman or construction experience needed
  • Maximum return on investments (ROI)


Enhanced Due Diligence

We have a systematic and disciplined approach when purchasing investment properties, putting each potential investment through intense scrutiny. We also use computer software that gives us a competitive advantage, so we can move faster and provide the most comprehensive available data for your peace of mind.

This rigorous set of procedures include, but are not limited to, the following:

  • Comparable property analysis and examination by a certified, independent appraiser.
  • An economic study of the neighborhood, city planning, and development.
  • Demographics of area, marketability, and growth potential.
  • Statistics on the crime rate.
  • Public transportation and schools.
  • Overall condition of the property, including structural foundations, floor-plan and home layout, heating, and air, plumbing, electrical, roof, and structural condition.

Property Finders Wanted

A lot of successful Real Estate Investors began their careers as Property Finders. It's a great way to learn the Real Estate business & determine if it is right for you. To be successful experience is not necessary, your willingness to learn & take direction are much more important. Having a positive attitude, professional appearance and excellent communication skills are a must. The other things you will need are transportation, access to a computer with Internet service, a digital camera your cell phones camera may work just fine and last but not least a very strong work ethic. The rest we can teach you, the process is simple. Our company buys & sells Land, Commercial property & Residential Property. We specialize in (FSBO) For Sale By Owner, (REO) Real Estate Owned, Short Sale, Foreclosure & Pre Foreclosure transactions. We need property finders in North & South Carolina, Florida & New York. We want people who can provide us with successful property leads on homes for sale (FSBO) in your area. If you are interested in making full time money for part time work in Real Estate then click on the contact us button & fill out the form, write Property finder in the comments box & one of our staff will get back to you before you know it. We will go over everything in greater detail answer any questions you may have & if you are a good fit for us we will get you statred. You will be entered into our Property Finders data base which will store all your pertinant infomation, all the potential leads you send us & any payments we make to you from leads we closed. You will also be given a little home work assignment so you can get started ASAP. Payments are made via Pay Pal within 48 hours after properties have been closed on. 

Are you an Investor, Wholesaler or Interested in Becoming One?

How would you answer these questions?


How long have you been investing?

What is your primary investing strategy?

What is your desired return on investment?

What types of properties are interested in buying?

How many properties do you want to buy this year?


Do you have a Wholesale inventory & no cash buyers?

Are you still struggling to find below market properties to assign?

Do you have systems in place to effectively market your deals?

Have you ever considered Co Wholesaling?

Your answers to those questions will allow our knowledgeable representatives to guide you in the right direction to make your financial dreams, realities. Call our office or e-mail us at raystheroof-rei@outlook.com  we look forward to hearing from with you. In the meantime View a sample investors presentation. We customize these property reports precisely to meet each investor’s criteria. We know your time is valuable, so we won’t waste it sending you information on properties that don’t meet the requirements. Below are definitions of a few important terms, statistics and the formula we use in our marketing presentations.

Return on Investment (ROI)

Is an accounting term that indicates the percentage of invested money returned to an investor after the deduction of associated costs.

Gain from investment - Cost of investment = ROI - Calculating ROI by dividing the equity by all costs.

For example, take a property purchased for $100,000 that requires an additional investment of $50,000 for repairs. After it’s been renovated, the property is valued at $200,000. $200,000 - $100,000- $50,000 = 50,000 which is the investor's equity position. The $50,000 profit after the sale divided by $150,000 in costs makes the ROI 33%. However, ROI cannot be realized until a property sells, which often is for less than the initial asking price, reducing the ROI. Costs such as appraisals, holding & closing to name a few can also cut into the ROI.

We take all these factors into account when calculating the offers we make on homes. As you can see in our sample marketing presentation, we cautiously overestimate the factors that may lower the return on investment I.e. the Time line Assumption - time to complete rehab 2 months, time to complete sale 3 months total time 5 months. This correlates to the estimated repair costs and holding time before the property is sold. In a worst case scenario it could take 5 months or longer to complete the rehab & sell the property. However, our contractors receive incentives if the work is completed on and or before scheduled. We often have buyers bidding on homes before the rehabs have even been completed. Our over estimation of the Time line Assumption, ERC & Closing cost usually make for a higher ROI than initially forecast.

Closing costs are factored in as a precaution in the event the seller & or buyer use real estate agents to facilitate the transaction, that fee is usually 6-7% of the sale price and can mean less money to the principle parties but if no agents are used that adds to the ROI because it was already factored in. Appraisals are usually paid by the seller unless the buyer has made that concession. The appraisal is not factored into the costs, often the appraisal is not scheduled until a contract is signed; prices have already been negotiated and agreed upon. If the appraisal comes back with a completely different figure, the home buying process is derailed. According to the National Association of Realtors (NAR), each month about 1 out of every 10 real estate agents reports that low appraisal value damaged a home sale. This is why it is in the best interest of the seller to pay for the appraisal.

65 - 70% Rule - MAO /ARV / ERC /

The 65 - 70% rule - This is more of a guideline and not a hard and fast rule. It is the most important formula in all of Real Estate investing. It is not a one size fits all model that can be applied to all situations. It should be adjusted depending on the price point of the housing inventory and exit strategies. Real Estate Investors use this as a barometer when purchasing Real Estate for a profit, use 65% if your funds are a hard money loan, use 70% if your using your own or a private money loan. This allows us to calculate the maximum allowable offer (MAO) we can make on any given property once we input two key factors, namely the after repair value (ARV) and the estimated repair costs (ERC). This knowledge along with being in tune with our markets are the key factors that enable us to make more competitive, fair offers that have a higher chance of being accepted and produce our desired (ROI).  

Here is the process flow we use for figuring out how much we can offer for a property:

  • Find after repair comparable (Comps): sales data within the last 6 months of similar properties sold within 5 miles of our subject property.
  • Analyze the comps to determine the after repair value (ARV) of our subject property
  • Estimate Repair Costs (ERC)
  • Do the math to determine the maximum allowable offer (MAO) we can make.

The Math

The formula is simple. Once we have calculated the ARV and ERC, we simply plug in the numbers. For this hypothetical example we will use a house that has an ARV of $150,000 and needs $35,000 in repairs. The last variable to figure out is the MAO. In this case we will use the 70% rule, I.e. .7 {ARV x .7} - Rehab = X or {$150,000 x.7} - {$35,000} = $70,000 and that is the maximum allowable offer we can make. In the case of a Wholesale deal we deduct the wholesale fee anywhere between $3,000 - $8,000, we will use $5,500 for this scenario. $70,000 - $5,500 = 64,500 and that is our maximum allowable offer.

For More Information about Co Wholesaling or Property Finding

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