Determining wholesale price?
Good evening all,
Reading reading reading! On podcast #43 in two weeks.
Thank you!
So listening to the podcasts I think I will be pursuing the wholesale niche to start and work my way to flipping.
I by no means am ready to start yet but that is where I think I will start.
So now for the question.
Assuming I was to find a deal, how do I determine, how do you determine the wholesale price?
Do you work a formula? Do you work backwards from the flippers goal?
This is what I came up with working backwards with made up numbers.
ARV= $200,000
Multiply by = 70%
Subtract rehab costs = $15,000
Final wholesale price = $125,000?
If the home was picked up from a motivated seller at $90,000, should we determine wholesale price to be the $125,000 or should I say I would like $15,000 in profit at go from there $105,000?
Again these are just hypothetical numbers to help me understand the logic behind pricing a wholesale deal.
Thank you all for looking and any help you could provide.
Bill