How to Analyze a Wholesale Deal in Under 5 Minutes

In wholesaling, speed matters. The faster you can tell a good deal from a bad one, the more properties you can look at, and the sooner you can lock up the ones worth having.

This is a quick screening framework. It won't replace full due diligence, but it will tell you in a few minutes whether a deal deserves more of your time.

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Step 1: Get the four numbers (1 minute)

You need four things to start:

1. The address, so you can pull comps
2. The asking price
3. Estimated repairs, even a rough visual estimate
4. ARV (after repair value), from sold comps

Everything else can wait. Tools like PropStream, Redfin, and Zillow will get you a quick starting point on value while you're still on the phone or at the property.

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Step 2: Run the 70% rule (1 minute)

The 70% rule is the fastest screen for whether a deal has room in it:

Maximum allowable offer (MAO) = (ARV × 70%) − repairs − your assignment fee

Example: ARV $250,000, repairs $40,000, assignment fee $10,000.

MAO = ($250,000 × 0.70) − $40,000 − $10,000 = $125,000

If the seller needs more than $125,000, the deal doesn't work at 70%. Negotiate or move on.

Some investors use a higher percentage in competitive markets and a lower one for riskier properties. The point is to apply the same rule every time so you can compare deals quickly. For a closer look, see understanding the 70% rule.

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Step 3: Sanity-check the comps (1.5 minutes)

Don't trust an automated estimate on its own. Quickly confirm that your comps are:

• Sold within the last 3 to 6 months
• Within about half a mile, in the same neighborhood
• Similar in size, within a couple hundred square feet
• Similar in bed and bath count
• Similar in condition (renovated, if you're estimating ARV)

If you can't find at least three solid comps, treat the ARV as a guess and dig deeper before you commit. If comps range widely, say from $200,000 to $350,000, the neighborhood may be too mixed to price with confidence. Our ARV guide walks through this step by step.

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Step 4: Look for deal-breakers (1 minute)

Some problems make a deal hard to sell to investors, no matter how good the numbers look:

• Foundation problems. Expensive, unpredictable, and a turn-off for many buyers.
• Major structural damage. May need an engineer and permits.
• Title issues. Liens, unresolved estates, or clouded title.
• Unpermitted additions. May not count toward value and may need to be removed or brought to code.
• Flood risk. A high-risk flood zone or a history of flooding affects insurance and resale.
• Location. A block next to heavy commercial use or other issues that limit resale.

Ask the seller directly: "Are there any foundation, structural, title, or flooding issues I should know about?" If the answer is yes, you can still make it work, but only if the price reflects it and you have buyers who take on those projects.

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Step 5: Decide how you'll exit (30 seconds)

Assignment of contract. You assign your purchase contract to a buyer and collect a fee at closing. You never take title. It's the simplest and fastest option.

Double close. You buy the property and resell it, often the same day. It keeps your spread private, but it costs more in closing fees and may require transactional funding.

Many wholesalers assign when the fee is modest and consider a double close when the fee is large enough that a buyer might push back on it. Whichever you use, Texas law requires you to disclose that you're selling a contract interest. See our guide to Texas wholesaling laws.

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A one-page deal screen

Property: __________________
Asking: $__________

ARV (3+ comps): $__________
Repairs: $__________
Your fee: $__________

MAO = ARV x 0.70
      - repairs - fee
    = $__________

[ ] Offer at or below MAO
[ ] Negotiate
[ ] Pass

Red flags:
[ ] Foundation  [ ] Structure
[ ] Title       [ ] Permits
[ ] Flood risk  [ ] Location

Next step: _________________

Save it on your phone and use it on every property.

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Example

Property: 3 bed, 2 bath, 1,400 sq ft, needs a full cosmetic rehab Seller asking: $140,000 Comps: recent renovated sales from $240,000 to $260,000, average $250,000 Repairs: paint, flooring, kitchen and bath updates, about $35,000 Your fee: $10,000

MAO = ($250,000 × 0.70) − $35,000 − $10,000 = $130,000

The seller wants $140,000 and your MAO is $130,000. Negotiate down about $10,000, or pass.

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Common mistakes

Analyzing before you know the seller is motivated. Ask early: "What's your timeline? How flexible are you on price?"

Underestimating repairs. New wholesalers often come in well under what buyers end up spending. Add a buffer, and when in doubt, bring a contractor.

Trusting automated values. Online estimates can miss by a lot, especially for houses that need work. Check them against actual sold comps.

Forgetting your own fee. If your fee isn't in the MAO, you're either working for free or pricing the deal too high for buyers.

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When to slow down

Five minutes is enough for typical cosmetic rehabs in areas you know. Take more time when:

• The property is unusual (manufactured home, land, small commercial)
• Repairs look like they'll be large, and you need contractor bids
• You're unfamiliar with the neighborhood
• The deal looks unusually good, which is a reason to double-check everything

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Tools that help

Comps: MLS data through an agent, PropStream, Redfin, and Zillow sold listings. Texas doesn't publish sale prices, so MLS data is especially useful here.

Repairs: contractor relationships are best. Per-square-foot ranges are a rough starting point. See the real cost of rehabbing in Texas.

Second opinion on value: on PropPipeline, ValueSync gives independent ARV and rent estimates you can compare against a wholesaler's numbers.

Tracking: a simple spreadsheet works fine at the start.

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The bottom line

Fast analysis isn't about cutting corners. It's about focusing on the few numbers that decide whether a deal works: ARV, repairs, price, and your fee. The 70% rule, a quick comp check, and a red-flag scan will sort most deals in a few minutes. The rest gets answered in due diligence once you're under contract.

Want to practice? Browse wholesale deals in Texas. Each listing shows the asking price alongside the wholesaler's ARV and repair estimate, so you can run this screen on real deals.