Anyone out their that have wholesaled multifamily properties before? Would like to know how do you determine your wholesale fee say on a 50+Unit? When doing smaller units like 12 or less I would usually add $100-$200 a door so would you suggest applying the same equation to a larger size amount of doors?
The best answer to this that I've heard was taking a fee based on the CoCR. If you are producing high returns, investors generally won't squabble at the fee. Just my $.02.
If the current market value of the building is, say a 7 cap, and you tied it up at an 8 cap leave a little meat on the bone for your buyer so he gets a good deal.
It's the same as saying if you tied a house up for $70k that was worth $90k (as-is) - how much should my assignment fee be?
Adding a price/door only works if you have room in your assignment price to still attract a buyer with your mark up.
And by the way, the answer to "how much" is always: as much as the market will bare.
I agree with above. The two options: 1) assign the deal when you have it under contract. 2) Close with private money or perhaps transactional funding. Under option 2 your profit spread is not disclosed. Therefore back to the key point is it still a smoking good deal for the end buyer?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing