So when you discount from retail all costs including purchase price, closing costs (both buy and sell) and improvement costs your margin is what is left.

This formula basically means you have 35% of the end selling price to cover your soft costs (Buying, holding selling) and profit margin.

I'd think there would be plenty of profitable flip opportunities in an investor's local area.Are there markets where flip profit margins are significantly better?

It would be like me buying GE at $30 a few years back, then being told I am forced to sell at $15 tomorrow even though I am fully capable of holding it, no margin call or other issue, just somebody forcing me to sell for no reason, even though it might be $40 again in 2 years.

I'm surprised at how low the margins are that these guys are willing to accept.

And the "street level" guys want more inventory but their margins are getting squeezed from larger institutional investors.

Usually buyers (including my clients) get excited about buying something.I tell them it is best to be prudent and wait for the right deal than to buy into marginal or loser deals where their money is now trapped into a bad investment.Take away the urge to just throw money into something and put it to the work and instead invest wisely and be patient.

Very few properties with enough margin to wholesale.

There is no question that the market is hoghly competitive right now, including here in CA and margins at trustee sales are very slim.

Doesn't appear to be any margin for a rehab or wholesale deal.