Doing the numbers is this the proper formula to attract buyers?

[Rachelle E.]

Hi Everyone,

I'm a newbie but I know when structuring a wholesale deal, sometimes the wrong numbers can kill the deal. This is my take on a proper attractive deal for end buyers. I need opinions from other experienced investors, is this formula correct?

Example:

Property Value: 260k
$260,000 x .65 = $169,000 .. (65% of actual market value)
Repairs: -$15,000

And also I would have to subtract my assignment fee and also allow room for any closing cost or fees a end buyers has to pay at closing

My fee between 3k-5k (depends on different factors)

So with that said I would offer between 140k - 145k this would include my fee

The extra few thousands I would allow for my end buyer to keep again to compensate for any fees at closings

All opinions are welcomed here !!

I'm sure many are going to bash me and say this is the reason wholesalers arent successful because they dont know their numbers. But thats why i'm here to ask first before I waste anyones time.

Thanks in advance

[Brent Zande]

This would have been a very attractive deal had you been able to put it together. I would suggest spending the money for a desk appraisal for the after repairs value and getting 2 contractor quotes. You are asking the rehabber to pay you for the deal, make it easy for that person to fully trust that its a deal and do that work yourself. It makes our lives easier and does get us writing checks. Good luck