Wholesaling Fee

[Dustin Verley]

I've heard conflicting scenarios in regards to the wholesalers fee and was hoping someone could clear it up. Which one of these scenarios is the typical scenario for a wholesale fee:

Scenario 1: ARV * .7 - Repair Costs - Wholesale fee = Total Offered Price (Subtracting wholesale fee for total offered price)

OR

Scenario 2: ARV * .7 - Repair Costs = Total Offered Price (Subtracting wholesale fee from ARV, or in essence, receiving your wholesale fee from the investor for what he/she sells the home for.)

Sorry if I confused anyone. :)