WHOLESALES

[QUINCY ROE]

Is there a formula to calculate how much your fee should be on a wholesale/contract assignment deal?

[David Oldenburg]

@QUINCY ROE 

 Hi, I answered this the other day in a slightly different way.  It's not what "you" want to make, it's what the property and investment yields to other investors. Some of your wholesale deals are very tight, and you will be lucky to make $5,000 to $10,000.  I know a wholesaler in my area who just made $52,000 on a $250,000 home!  

You have to know what the home will be worth after repairs, what the rehab will cost, and what ROI each of your investors is seeking. If the deal is a 15% ROI and I am looking for 20%, I am not going to be interested. However, if I am looking for 10% and you bring me a 15% deal, I am going to jump on it.

I suggest building a network of investors and know exactly what they want to get excited and quickly pull the trigger on a deal.  Once you know exactly what they will buy, it is very easy to enter into contracts confidently, because you know you can quickly sell the property.