Itemizing Fixed Cost for a wholesale transaction

[Issac Phillips]

Hello, I am a new wholesaler preparing to launch my first marketing campaign. But before I do, I'm still unsure on how to find the exact figures for the itemized list of Fixed Cost in order to accurately calculate the rehabber's Maximum Purchase Price. So I'm writing today with the hopes of figuring out how to find these exact values. My reading and a fellow investor taught me that it starts with understanding the 70% Rule which is a quick rule of thumb that can be used to quickly analyze a rehab deal or wholesale deal by applying a 30% discount to the ARV (less repairs).

70% Rule Formula

Quick analysis assumes profit and fixed cost will make up 30% of ARV

(ARV * 70%) - Repairs = Rehabber's MPP

Detailed analysis breaks the 15% into a detailed itemized list...

ARV - Repairs - Purchase Costs - Holding Costs - Selling Costs - Profit = Rehabber's MPP

Then, in order to determine Wholesalers Maximum Allowable Offer you would use the following formula:

MAO = Rehabber's MPP - Wholesale Profit

What I need to be able to do is use the Max Purchase Price formula (detailed analysis) in order to calculate a more accurate MPP. This will in turn allow me to contract the property at the right price. The MPP Formula (detailed analysis) requires you to itemize your Fixed Costs (instead of just simply applying 15% of the ARV). Often Rehabbers & Wholesalaers will use the 70% Rule (quick analysis) to quickly evaluate a deal and then use the Max Purchase Price Formula (detailed analysis) to perform a more accurate calculation before they get the property under contract. This is where I fall short. I need help on how to find the following itemized list of Fixed Cost in order to calculate the Rehabbers MPP using actual figures instead of stopping at 15% of the ARV:

• Purchase Costs
• Holding Costs
• Selling Costs

J. Scott in his article on Fixed Cost expands the categories further using the following chart:

Can anyone tell me where to look or who to ask for the detailed list above for the San Antonio area specifically? Thank you.