Am I being greedy on my wholesale fee?

[Matthew Dovner]

Heres the deal. I got a 3 family that already has condo docs in place. All 3 units are immaculate! All the buyer has to do is close and relist right away. No rehab! The multi is going for 649,000.00 to him. He will then turn around and sell 2 units for 289k conservative and one unit for 259k. Total profit after holding costs would be 130,000.00 and I believe he can turn this around in 2-3 months.

Do you think 20,000.00 for my fee is reasonable? Or is that too much?

Thanks for any advice.

[Account Closed]

Originally posted by @Tim G.:

There is no reasonable or unreasonable wholesale fee. I don't get why this comes up so often.

If you rehab a house, do you sell it under list if you are going to make $40,000 and that is a "reasonable" amount to make on a rehab so you shouldn't ask for more?

No, you let the market dictate what it is worth and what you make and you pat yourself on the back for a job well done.

I don't get why this comes up so often either. I think calling it a fee may be part of the issue. I've never re-sold something with a fee. I've assigned contracts, double closed contracts and now I mostly close on everything before I resell. I've never once used the word fee. I'm a principal. I have an asking price. Buyers will pay it or they won't. The word "fee" sets up the notion of fee for service. I'm not providing a service. I'm selling a property and/or my interest in the property.