How to Analyze a Wholesale Deal in Under 5 Minutes

Time is money in wholesaling. The faster you can evaluate a deal, the more properties you can analyze—and the quicker you can lock up the good ones before your competition.

Here's the exact framework experienced wholesalers use to analyze deals in minutes, not hours.

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The 5-Minute Deal Analysis Framework

Step 1: Get the Critical Numbers (60 seconds)

You need exactly four numbers to start:

1. Address (to pull comps)
2. Asking Price (seller's number)
3. Estimated Repairs (rough visual assessment)
4. ARV (After Repair Value from comps)

That's it. Everything else is secondary.

Pro tip: Use your phone to pull comps while you're still on-site or on the phone with the seller. Tools like Zillow, Redfin, or PropStream give instant estimates.

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Step 2: Run the 70% Rule (60 seconds)

The 70% Rule is the fastest way to determine if a deal has potential:

Maximum Allowable Offer (MAO) = (ARV × 70%) - Repair Costs - Your Assignment Fee

Example:

• ARV: $250,000
• Repairs: $40,000
• Your Assignment Fee: $10,000

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

Decision point: If the seller wants more than $125,000, the deal doesn't work at 70%. You can try negotiating down or walk away.

Quick variation: Some investors use 75% for easier markets or 65% for riskier deals. Adjust based on your market.

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Step 3: Verify Comps (90 seconds)

Don't blindly trust automated valuations. Quickly check:

✅ Sold in last 3-6 months (recent data) ✅ Within 0.5 miles (same neighborhood) ✅ Similar size (±200 sq ft) ✅ Similar bed/bath count ✅ Similar condition (updated vs. dated)

If you can't find at least 3 solid comps, the ARV is questionable. Proceed with caution or get a professional opinion.

Red flag: If comps vary wildly ($200K to $350K), the neighborhood might be too diverse to wholesale confidently.

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Step 4: Spot the Deal-Killers (60 seconds)

Some issues make deals un-wholesaleable, no matter how good the numbers look:

❌ Foundation problems - Expensive, unpredictable, scares buyers ❌ Major structural damage - Code issues, engineering required ❌ Title issues - Liens, estate problems, clouded title ❌ Illegal additions - Unpermitted work that won't appraise ❌ Environmental hazards - Mold, asbestos, lead paint (major) ❌ Location problems - Flood zone, high-crime area, next to commercial

Ask the seller directly: "Are there any foundation, structural, or title issues I should know about?"

If the answer is yes to any deal-killer, walk away unless you're experienced enough to price it correctly.

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Step 5: Calculate Your Exit (60 seconds)

Wholesaling has two exit strategies:

Option 1: Assignment of Contract

• You assign your contract to a cash buyer
• Buyer pays you an assignment fee ($5K-$30K typically)
• You never take ownership
• Fastest, simplest exit

Option 2: Double Closing

• You actually buy the property (briefly)
• Immediately sell to end buyer
• Keeps your profit margin private
• More complex, higher closing costs

Quick decision: If your fee is under $15K, use assignment. If it's $20K+, consider double closing to avoid buyer pushback on your fee.

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The One-Page Deal Analyzer

Here's the exact checklist to use:

📋 QUICK DEAL ANALYSIS

Property: ________________  
Seller Asking: $__________  

ARV (3+ comps): $__________  
Repair Estimate: $__________  
Your Assignment Fee: $__________  

70% Rule Calculation:
MAO = ($_____ × 0.70) - $_____ - $_____ = $________

Deal Status:
☐ PASS - Offer at or below MAO
☐ NEGOTIATE - Close but need lower price  
☐ WALK - Numbers don't work

Red Flags:
☐ Foundation issues
☐ Structural damage  
☐ Title problems
☐ Unpermitted work
☐ Location concerns

Next Action: ________________

Print this or save it on your phone. Use it for every property.

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Real-World Example

Property: 3/2 house, 1,400 sq ft, needs full cosmetic rehab
Seller Asking: $140,000
Comps: Recent sales at $240K-$260K (average $250K)
Repairs: Paint, flooring, kitchen/bath updates = ~$35,000
Your Fee: $10,000

Analysis:

• ARV: $250,000
• MAO = ($250,000 × 0.70) - $35,000 - $10,000 = $130,000

Decision: Seller wants $140K, but MAO is $130K. Negotiate down $10K or walk.

Time spent: 4 minutes.

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Common Mistakes That Waste Time

1. Over-Analyzing Before Verifying Interest

Don't spend an hour analyzing a deal before confirming the seller is actually motivated. Ask up front: "What's your timeline? Are you flexible on price?"

2. Ignoring Repair Costs

New wholesalers often underestimate repairs by 30-50%. When in doubt, add a buffer. It's better to walk away from a marginal deal than get stuck with one.

3. Trusting Zillow's Zestimate Blindly

Automated valuations can be off by 10-20%. Always verify with actual sold comps, not estimates.

4. Forgetting Your Assignment Fee

Don't calculate MAO without including your profit. If you forget this, you're working for free.

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When to Slow Down

Not every deal deserves 5 minutes. Spend more time when:

• Property is unusual (manufactured home, commercial, land)
• Repairs exceed $75K (get contractor quotes)
• You're new to the neighborhood (verify comps carefully)
• Deal is exceptionally profitable (double-check everything)

For bread-and-butter deals (cosmetic rehabs in areas you know), the 5-minute framework works perfectly.

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Tools That Speed Up Analysis

For Comps:

• Zillow, Redfin (free, instant)
• PropStream, BatchLeads (paid, more accurate)
• Local MLS access (if you have it)

For Repair Estimates:

• Contractor relationships (best option)
• Per-square-foot guidelines ($10-$60/sq ft depending on scope)
• PropPipeline's ValueSync (automated estimates)

For Deal Tracking:

• Simple spreadsheet
• Podio or REI software
• PropPipeline's deal management

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The Bottom Line

Fast deal analysis isn't about cutting corners—it's about focusing on what matters.

The 70% Rule, solid comps, and a quick red flag check will tell you 90% of what you need to know in under 5 minutes.

The other 10%? That comes during due diligence after you have the property under contract.

Master this framework, and you'll analyze 10X more deals than wholesalers who overthink everything.

Ready to put this into practice? PropPipeline gives you instant access to off-market properties with ARV estimates, comp data, and deal analysis tools—so you can move fast when opportunities arise.

Start analyzing deals today. Join PropPipeline.