How much to pay wholesaler?

[James Baker]

Hello BP,

I could use the expertise of the BP community. I wanted to know if there is a common number or rule of thumb when an investor is purchasing a property from a wholesaler. I understand that wholesalers try to target their purchase of a distressed property at 70% of ARV minus repair costs. But what would an investor want to pay from the wholesaler? Thanks in advance.

[Alan G.]

@James Baker

Don’t worry about how much they make, worry about whether it’s a good deal for you or not. I’ve purchased many properties from wholesalers and even know they made a killing, I also got an amazing deal. Yes, I’m happy to have them make 15k if I’m getting a home run at the same time.