Wholesaler · Fort Collins, CO · Member since 2019 · 25 posts · 1 vote
Hi Bp! I was curious as to what a reasonable wholesale fee is. I'm trying to get started wholesaling and little by little gaining the necessary knowledge enough to get started. What 5 mark up do you guys usually do? I'm located in Fort Collins, CO, in case anybody has insights into this area.
Boston, MA · Member since 2008 · 149 posts · 57 votes
6y
I think the "fee" is the markup on the property. You find something underpriced, maybe perform some minor painting or other quick fix, and then resell it for a discount to an investor. The discount has to be worth it for them to buy, but the markup you added is irrelevant. I wouldn't just charge X% markup, you miss the opportunity to make the most money! As long as its still a good deal for the investor I wouldn't care.
Investor · Northern Colorado · Member since 2019 · 49 posts · 19 votes
6y
@Alonso Fernandez Maldonado
Depends on how much you negotiated to buy the property for. In FoCo I would say around 10-20k as long as there is still plenty of room for the buyer to make money. If you could negotiate more between the seller and the buyer than you can make more, but 20k in FoCo is about 5% on most ARVs in FoCo which is reasonable.