Can anyone tell me what the typical wholesaling fees are in South Bend/Elkhart area? Does $5000 to $10,000 sound normal for hear? Also, what are flippers making on deals in general? I know that in other parts of the country a flipper will not touch a property if the profit is less than $50,000. Not sure that is so reasonable here by would love to get feedback. Thanks so much and happy Holidays
I've purchased several properties from local wholesalers and have found that $5K is about right. I don't begrudge them making a profit, but find that the the bigger issue is whether they can actually add value with the $5K fee added on. I've seen too many houses advertised by wholesalers where the price makes perfectly good sense to them, but they have not left enough flesh on the bone to make it worth my while.
For fix and flips, I try to focus on the first time home buyers. Houses in the $125-150K range. The sweet spot seems to be a purchase around $30-35K, $30-35K in rehab and a sale at $125-130K. There's some room there for the unexpected challenges that I'll find when I open up a wall during rehab and still be able to make a profit.