Wholesale fees - what are some rules of thumb to follow?

[John Fifer]

I know there’s a ton a variables that come into play, but what are a couple rules of thumb to estimate how much a wholesaler should be charging for a deal? Is 10% of the potential profit a rough estimate? For example, if I stand to make a $50k profit, would a $5k fee be reasonable?

[Roland Paicely]

The long answer is that 'it depends'.  I don't think that there is a specific amount that a wholesaler should make on a deal.  However, that can be influenced by local norms.  If you're in an area such where the average fee is $2,000-$10,000 that's one thing.  However, I doubt that would fly in California where the price of a house is much higher.  Hence I'd assume that the fee would be much higher.  It looks like you're in Gainesville, FL.  So I'm guessing the lesser of the two scenarios would apply.