Updated over 8 years ago on . Most recent reply
Buy & Hold vs. Wholesaling Calculators
I analyzed a property using both the Buy & Hold and Wholesaling calculators and the same variables. Paying the full asking price in cash ($650,000) gives a cash on cash ROI of 4.95%. When I analyzed the same property using the Wholesaling calculator and a required return of 4.95% (equal to the ROI as a rental), I got a max allowable offer price $100,000 less than the price paid for Buy & Hold, even though the wholesaler's profit was set at only $5,000.
This is a huge difference. Can anyone explain the large difference?