help with deal profit margin
Hello to you all,
Quick intro, I'm Geoff a fairly new wholesaler/investor here in Charlotte NC, crossing over from the entertainment field. I have a deal I would like my fellow BP folks to help me with.
SFR 3/2.5
ARV = 300k
Repairs - 30k
If I go with the normal wholesaler formula.
300k X .65 = 195k my offer
Assign to buyer
300 X .70 = 210k
Assignment fee for me - 15k
Which is awesome but for the buyer if he is at 210k + 30k repairs + 10k closing and fees = 250k
That's a nice 50 grand to my buyer. Bare with me here this is my first deal of this amount. I haven't given my offer yet.
Question - Am I leaving too much equity on the table? Should I increase my fee?
I would like to leverage everyone's profit. Not be greedy
Seller is looking to move out the country in 2 years but wants to hear my offer. Don't no if that's motivated or not.
Will it be offensive to ask for 195k where the seller who doesn't no the comps may be offended for his 300k home that he thinks just need minor repairs. Smh
Your ideas and point of views on how you would approach this deal would be appreciated.
Thanks,