Does the wholesaler include rehab costs in repairs ?

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Does the wholesaler include rehab costs in repairs ?

Armani Emon
Baltimore, MD · Member since 2019 · 85 posts · 37 votes

I have a buyer who wants me to use this formula

ARV- Repairs+upgrade costs *70=asking price. Is this accurate?

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  • Robert Garcia
    Real Estate Agent · Baltimore (Dundalk), MD · Member since 2015 · 23 posts · 3 votes
    7y

    Typical formula would be ARV x 70% - Repair costs = Offer price. Not sure what you mean by "Repairs+Upgrade" costs, they're the same thing in this situation I would assume

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  • Armani Emon
    OP
    Baltimore, MD · Member since 2019 · 85 posts · 37 votes
    7y
    Originally posted by @Robert Garcia:

    Typical formula would be ARV x 70% - Repair costs = Offer price. Not sure what you mean by "Repairs+Upgrade" costs, they're the same thing in this situation I would assume

    So I did my numbers like

    ARV- Immediate repairs*70= My asking price.

    The house is in perfect condition , minus minor cosmetics. However the buyer wants to rehab and upgrade it and wants me to pay the upgrade/rehab fees . Does this typically happen in deals?

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