Cash buyer looking for 10% Roi

[Ronnie Monroe]

Hello all

I am a new wholesaler and Im cold calling cash buyers in my area and asking their criteria to match them with properties I find. One investor said they want too get a 10% ROI when the property sells. Does anyone know a formula to ensure you lock up the property at the right price to ensure the cash buyer gets the desired outcome of 10% ROI? Thanks in advance!

[Kelly Boulton]

Hi Ronnie. There are many options online that can help you calculate your ROI, but the formula is relatively simple:

Total Cost to Invest (purchase price + rehab + any holding costs + commissions and closing costs on both sides of the transaction)

Net Profit (sales price - total cost)

Formula: Net profit / Total Cost = ROI %

Also, not sure if you would like access to a spread sheet/calculator that can do this for you, but I have created my own.  If you're interested to know more, let's connect. Otherwise, hope this helps!