Question about Wholesale Pricing

[Rick Wade]

Hello All

Can someone give me an idea of how much a typical Wholesaler will charge for a property? I am speaking %of ARV. I ask because, I am finding wholesalers in my area charging as much as 80% ARV before rehab? I am also finding some of them to have very inflated ARV's. In order to do a Brrrr, which is my main strategy, I need to purchase closer to 50% depending on the cost of Rehab. Of course I do not have to purchase from any of them, but I am curious as to other BPers experience with wholesalers. I feel like everyone should make their money, I just have not found Wholesale houses that will work for me. I am still looking for other Wholesalers that may have closer prices to my needs.

Thanks for your input.

Rick 

[Tyler Gibson]

@Rick Wade This is not a one size fits all kind of situation. Every wholesaler is different. Like with any real estate transaction make them an offer of what you would like to pay and see if they take it. I have found that very few wholesalers are actually sourcing the deals themselves. Many now a days are flipping someone else's wholesale deal with a markup. I get tons of emails and sometimes see the same property 3 times for 3 different prices. The best way to buy something with the equity you need in it is to find the deal yourself. I know that this response might not solve your problem but this is the reality in my market and in many markets around the country. There are Gurus teaching this process of daisy chain flipping. There are also too many people trying to get into real estate through wholesaling and many of these people do not have the knowledge required to determine if it is even a deal. I could go on about the state of wholeselling but I'll quick while I'm ahead. There are good ones out there but they are hard to find.