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Updated over 1 year ago,
Lower profit margins when wholesaling in lower ARV areas?
Hi, I am debating wether to focus my marketing onto Detroit at the moment. The ARV in the area is lower around 100k so my concern is that if I get a wholesale deal in Detroit my profit margins will be much lower due to the already low price of housing in this market. I could get at maximum a 10k contract in Detroit but in Georgia I am able to get 20-30k assignment fee's as the average ARV is higher so there is more wiggle room for negotiations.
Wondering if anyone has experienced this and if lower ARV areas = lower assignment fee's per contract