30 percent discount when wholesaling

[Joshua Ewing-Simone]

How important is it to get a property under contract for a 30 percent discount when wholesaling? (ARV - 30%) Right now I am negotiating with a seller and with the numbers I calculated at a 30% discount puts me under another buyer. Should I hit the seller with the offer and move on if he says no or readjust the discount? This would be my first wholesale deal. Any help is appreciated thank you!

[Wayne Brooks]

Originally posted by @David Frandsen:

I like Brent Daniels(TTP) formula: ARV x .84 minus rehab cost, minus your wholesale fee.

Huh?  A 16%  gross margin means you'll lose money after holding and selling costs….assuming your ARV and rehab costs were perfect.