I have a potential Class A property near San Jose's Rose Garden Neighborhood. I estimate the ARV to be 1,250,000 on the conservative end. Owner states they have remodeled Bathrooms and bedrooms but only permits I see pulled are from 1980. So I am assuming these are still in need of updating. It is a 2 bed 2 bath 1500 sf. I am throwing out a rough number of 200K for repairs since I haven't seen it and he wants an offer before I view it. I am planning on wholesaling it since all my capital is currently tied up. What would you want to have as a desired profit for this house? What would you recommend a fair wholesale fee be?
You should make as much profit as possible.
I once bought a property from a wholesaler and he made more on his wholesale than I was expecting to make turning it into a rental. Would I have loved to have a piece of his profit? Sure! However, it would have been stupid of me to try to eat this wholesaler's lunch. The property was still a great deal for me. I bought several more from that same guy over the years.
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