Determining Max Offer When Wholesaling

[Thomas I.]

Hey guys,

I did some digging on the topic and I'm sure it is somewhere in the archives, but I can't seem to find anything about "quiet costs" (taxes, insurance, cost of money etc) when determining max offer.

From what I understand the standard formula is:

ARV x .7 - repair costs - assignment fee = MAO

I don't see anything about quiet costs in that formula. Are those expenses being paid by the buyer (fix and flipper) out of the 30% discount? Is it not our job as wholesalers to worry about it?

I want to be able to bring solid deals every time I shop a contract around, and understanding what buyers are thinking, and exactly what's happening with all the money will help with that process.

Cheers,

Thomas