Wholesaling Fee Amount And Deposit Northern California

[Cody Evans]

Hi all, 

I have my first few leads lined up and when I call sellers to negotiate I need an idea of what my bare minimum wholesale fee should be. I have properties in the Vallejo and Fairfield area. I need to know a range from low to high for a wholesale fee and a low to high range for a deposit so my buyer doesnt back out.

A low to high range on total expected repair costs for a house in our area is also helpful if you want to throw that into your answer.

[Sean Walton]

As far as wholesale fee it really depends on how good of a deal you have negotiated. I would want $5,000 minimum. I would say the higher range would be 5% of your end buyer's purchase price. Most buyers won't mind you making a large profit if there is still meat on the bone. Vallejo is hot right now an if you negotiate a great deal you may want to close on it and list it on the MLS if you have access to cash.

A 3% earnest money deposit should keep people from backing out but I would make sure you have someone else lined up or the cash to close if needed.

It really depends on the area of town and level of rehab. I would say $5000 per bathroom and $7000 for the kitchen. Then call some contractors for things like paint and carpet.

I know some buyers active in Vallejo PM me if you want contact info