Determining wholesale price?

[William Manzie]

Good evening all,

Reading reading reading! On podcast #43 in two weeks. 

Thank you!

So listening to the podcasts I think I will be pursuing the wholesale niche to start and work my way to flipping. 

I by no means am ready to start yet but that is where I think I will start. 

So now for the question. 

Assuming I was to find a deal, how do I determine, how do you determine the wholesale price?

Do you work a formula? Do you work backwards from the flippers goal?

This is what I came up with working backwards with made up numbers. 

ARV= $200,000

Multiply by = 70%

Subtract rehab costs = $15,000

Final wholesale price = $125,000?

If the home was picked up from a motivated seller at $90,000, should we determine wholesale price to be the $125,000 or should I say I would like $15,000 in profit at go from there $105,000?

Again these are just hypothetical numbers to help me understand the logic behind pricing a wholesale deal. 

Thank you all for looking and any help you could provide. 

Bill