Key Takeaways
- Downturns compress ARV and buyer margins but expand the motivated seller pool—net effect on volume is mixed.
- Adapt the MAO formula to 65% of ARV (from 70%) and increase repair estimates by 15% during downturns.
- Shift marketing to "avoid foreclosure" messaging and expand to new distressed seller lists.
- Firms with capital reserves can pivot from assignment to acquisition during downturns for 2-3x higher per-deal returns.
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Test Your Knowledge
1.How should a wholesaling firm adapt its marketing during a market downturn?
2.What is the most important buyer network adjustment during a market downturn?
3.What earnest money strategy should be employed during market uncertainty?