Low equity wholesaling

[Marcus Squires]

I'm a bit confused about equity when it comes into wholesaling so I wanted to present a scenario where the seller has 30% equity.

Sellers remaining loan payment: $140,000

ARV: $200,000

Repairs: $20,000

Closing Costs: $5,000

Wholesale Fee: $5,000

Flipper Profit: $25,000

140,000 + 20,000 + 5,000 + 5,000+ 25,000 = $195,000

200,000 - 195,000 = $5,000

So in this scenario would my maximum allowable offer be $5,000?

What would the flipper be looking for here?

I'm I thinking about how to calculate equity correctly or am I way off?

Thanks