Wholesaling Forumla/s : 70% VS Fixed Cost

[Alicia Arizpe]

I understand the 70% rule and I know of (have yet to practice) the fixed cost method for calculating MOA. However, I’m curious as to which one is best for wholesaling in general. Or is it situational? And for the fixed cost method, what’s the best way to calculate the ‘fixed costs’?

[Adam Bartling]

@Alicia Arizpe It depends on the property.   There are all sorts of variables, but it comes down to you not BSing yourself and if wholesaling leave some margin for your buyers.  

When doing the math, do not base your #s on Top of market value, back it down 10-15%, do your #s still work?

Do not be like many wholesalers and have no idea of repair cost, there are tools on this forum to help calculate, also make some GC friends.

Think as the buyer/ investor, what would you need to make on the rent or the flip to make sense?

Some may say this is conservative and just Go for the Big Money Always!  But when you find an Awesome Deal the money and offers will come above what you are asking.