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Updated about 10 years ago on . Most recent reply
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largest wholesale fee possible
Any idea what the largest wholesale fee could be? can it simply be a function of the sales price and/or ARV? I would think that on a $4 million dollar property that the fee could be substantial - like $200,000 or something like that.
at the end of the day, does it really matter so long as the end buyer is getting a sweet deal?
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@Ryan Billingsley totally agree with you.
@Sam B. i agree about the repeat business but disagree with the amount of work. one deal that brings in 200k is easier than 20 at 10k. with the latter, you have to find 20 different sellers and get 20 different offers accepted, etc.
one thing i'm carrying over from my futures and stock trading experience is that you should always limit your losers and let your winner ride. meaning, if you can still make money for your end buyer and preserve or enhance the relationship, then don't limit your fee based on some arbitrary number. just my opinion.
don't forget, a listing agent's commission on a $4,000,000 house is $120,000. Add a buyer's agent and now the total cost to the seller is $240,000. If I, as a wholesaler don't need a realtor, that's an immediate $120,000 saved. so perhaps the fee here could be more like 60k - 75k. which is almost enough for that "item" we were talking about @Ryan Billingsley :)