Updated almost 12 years ago on . Most recent reply
non absentee owners
what else can i set my criteria for as a wholesaler besides absentee owners?
why shouldnt i just take everyones calls and do arv-repairs-my profit= max offer and do a bunch of wholesale deals?
Most Popular Reply
@Account Closed , no. Repairs is how much he has to pay the contractor for labor and materials.
Some people are proponents of the 70% rule: the max a rehabber should pay for a property is 70% of ARV minus any needed repairs. You need to get it even lower than that if you're going to have any wholesale fee. The 30% of ARV that is left goes to the rehabber's profits and holding costs.
Some people like to define their profit ahead of time and estimate holding costs. So, they would say ARV - repairs - holding costs- desired profit. Again, you need it lower than that to have a wholesale fee.