Wholesale business expenses

[Michael J.]

Another general question :)

For those that have serious wholesale businesses, in your opinion what percent of money do you spend for all your expenses, marketing, selling, equipment, office supplies, gas etc. etc., not including taxes.

So if you do 20 deals at $5,000 profit each on average and make $100,000 in one year then xx% would go towards expenses. Just trying to get a general number for planning purposes like 10%, 20% etc. is used up in expenses.

Also do you find that the overall amount of expense percentage wise goes down the more deals you do? 20 deals a year and 10% expenses, 100 deals a year and 5% expenses for example.

[Account Closed]

I have been a wholesaler for more than 17 years and the advice I can give you is your office and computer expenses are the biggest cost. Getting access to the internet, analysis websites for properties, skiptrace servies, phone service. Then there's travel costs to and from potential properties. This can easily run several $100 a month.

It is not a % of your costs because you have to spend the money first to be able to get a deal then your marketing costs to sell it. That can run you several hundred a month also. But everything is relative based on your skills and experiences.