What factors determine the wholesale offer?

[Giovanni Cortorreal]

Hi guys-

In my transactions I have the buyers paying all the closing cost.

As you know, to arrive at the acquisition price we subtract the repairs and the assignment fees from 70% of the ARV.

But how about the closing and holding cost how are those cost handled? Do we act like those expenses don’t exist? They are part of the end buyer’s cost you know.

But the problem is that if I keep reducing that already reduced price, there is not going to be much left to acquire the property.

How do you guys handle those additional expenses?

[Tim G.]

Hey Randall, sorry no one else has responded.

There are a lot of discussions on here that have been asked over and over so sometimes searching helps you find an already answered question.

You need to know your buyers, and what margins they need and how they work. When you know that, you can price your deal per their criteria and anything you get below that will be yours to keep. Just ask you buyers.