Hello everyone, so I'm new to biggerpockets and real estate as a whole. I plan on getting my license as a real estate agent in the near future but for the past year I've been learning everything I can about wholesaling as this is how I plan to start my real estate career in the mean time. I have a good understanding of everything except for the following; ARV, repair costs, and fixed costs. As a wholesaler, I know that in order to sell a property to a buyer I must determine the MAO (maximum allowance offer) for a house. Below is the formula that I plan on using:
MAO = ARV - Repairs - Fixed Costs - Profit - Wholesale Fee
What I need is someone who is willing to show me exactly how to estimate ARV, repair costs, and fixed costs so that I can accurately determine the price for both the buyer and seller. If you'd be willing to help me, I would appreciate it and please let me know what I can do for you in return. Again, this is what I need to learn:
- The Flipper’s Profit (how much the flipper wants to make on the flip)
- Repair Costs (how much it costs to fix up)
- Fixed Costs (how much the deal is going to cost the flipper, including holding costs and transaction costs on both sides of the deal)
