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Updated almost 10 years ago,
Average wholesale target profit margin
So you just found a 1000 sqft SFR with an ARV of $100K; it needs some rehab of say $10K and the seller is selling the property in its 'as is' condition for less than the ARV of $100K -- an amount which we are trying to determine.
As a wholesaler, you want to purchase the property (or get it under contract) and either assign the contract or sell the property to a 'rehabber' or retail buyer who finds the adventure of rehabbing their entry level home thrilling.
What is a good or standard target profit margin from a wholesalers' point of view? How much $ in dollars or a % would be considered standard, normal or the going rate?
We could also state the question this way: what is the most you would or should pay the seller in the AB transaction? and what also is the best price to sell the property to a cash buyer in the BC transaction?