Need clarification on wholesaler math - 70% ARV

Member since 2019 · 17 posts · 4 votes

Hello,

I'm learning how to wholesale, wanted to make sure I got this math right

Does a wholesaler make his money in anything before 70% ARV?

From my understanding a wholesaler would sell a property to a flipper and the flipper would buy the property at 70% ARV, so my money as a wholesaler is made in between anything before the 70% ARV?

Thank you for your support biggerpockets!

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

5mo

70% arv MINUS repairs is the general rule although those deals are hard to find these days.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
5mo
70% arv MINUS repairs is the general rule although those deals are hard to find these days.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
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Cameron Jones
OP
Member since 2019 · 17 posts · 4 votes
5mo
thank you, what are most deal nowadays?
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- Mitch Messer
  Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
  5mo
  Quote from @Cameron Jones:
  
  thank you, what are most deal nowadays?
  
  Depends entirely on the market.
  You'd be hard pressed to find many such deals in popular and mature markets like Atlanta or Austin.
  However, in underappreciated markets, like Tulsa, Harrisburg and Augusta, you can still find deals that allow for a reasonable wholesale fee AFTER calculating 70% * ARV minus Repairs.
  (BTW, I can't reply to you by DM on this platform, so you'll need to email or call me if you want to chat one-on-one. See my BP profile for details.)
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- Mitch Messer
  Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
  5mo
  Quote from @Cameron Jones:
  
  thank you, what are most deal nowadays?
  
  @Cameron Jones
  
  Depends entirely on the market.
  
  You'd be hard pressed to find many such deals in popular and mature markets like Atlanta or Austin.
  
  However, in underappreciated markets, like Tulsa, Harrisburg and Augusta, you can still find deals that allow for a reasonable wholesale fee AFTER calculating 70% * ARV minus Repairs.
  
  (BTW, I can't reply to you by DM on this platform, so you'll need to email or call me if you want to chat one-on-one. See my BP profile for details.)
  0 Reply
Anthony L Amos Jr
Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
5mo
Quote from @Cameron Jones:

Hello,

I'm learning how to wholesale, wanted to make sure I got this math right

Does a wholesaler make his money in anything before 70% ARV?

From my understanding a wholesaler would sell a property to a flipper and the flipper would buy the property at 70% ARV, so my money as a wholesaler is made in between anything before the 70% ARV?

Thank you for your support biggerpockets!
Historically the formula has been ARV x 70% - Repairs + Assignment Fee = Max Allowable Offer (MAO) but as borrowing got more expensive it's tough to make a good deal with this. Since some lenders are willing to refi up to 80% you can go up to that number but know who those lenders are so you can refer them to the flipper. Long term rental investors may even go a little higher since they are playing the long game.
1 Reply
Tim Hall
Flipper/Rehabber · Tallahassee, FL · Member since 2014 · 463 posts · 237 votes
5mo
Yep I agree with most of what is being said here, however, hard to find does not mean impossible, just hard to find and that's how it's always been. The more you network with people the more likely you are to find the elusive. I wouldn't count on it for a full time paying gig though. More like a well paid hobby. You need to find something that pays a little more regularly. Unless you have a bit of money behind you and then just go for it.
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Carson Nordmann
Member since 2026 · 119 posts · 45 votes
5mo
The 70% rule is a flipper's rough offer ceiling, not a law. Formula is usually ARV x 0.7 minus rehab. Your assignment fee comes out of whatever room is left between that number and what the seller will actually take. If the seller won't go low enough, there's no deal to assign.
0 Reply
Vijay Friedman
Miami, FL · Member since 2026 · 766 posts · 124 votes
5mo
Quote from @Cameron Jones:

Hello,

I'm learning how to wholesale, wanted to make sure I got this math right

Does a wholesaler make his money in anything before 70% ARV?

From my understanding a wholesaler would sell a property to a flipper and the flipper would buy the property at 70% ARV, so my money as a wholesaler is made in between anything before the 70% ARV?

Thank you for your support biggerpockets!

@Cameron Jones
The 70% ARV rule is more of a rough guideline than a hard rule, and the wholesaler fee usually comes out of the spread between the seller's price and the flipper's maximum allowable offer. Rehab costs, holding costs, market conditions, and desired profit all affect the actual numbers.
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