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Updated about 11 years ago on . Most recent reply

User Stats

29
Posts
15
Votes
Geoffrey F.
  • Real Estate Investor
  • Charlotte, NC
15
Votes |
29
Posts

help with deal profit margin

Geoffrey F.
  • Real Estate Investor
  • Charlotte, NC
Posted

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,

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