Hockessin, DE · Member since 2015 · 2 posts · 0 votes
Hello,
I've been studying how wholesaling works for awhile, but I don't have a clear sense of how you get the property to closing and how you get your "wholesaling fee". For example- if I found a property for $80k and wanted to charge a $10k fee how do I go about that? Do I advertise the property for $90k? And how to you set up the agreement of sale so you are able to get out of it if you don't find a buyer? I wouldn't want to be in that situation but that would be good to know just in case. Any input would be greatly appreciated!
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
Howdy Kelly. Gonna hop in here before you get a lot of flack. You don't want to "set up the agreement of sales so you are able to get out of it if you don't find a buyer". You want to have other means to be able to close on the property if you can't "find a buyer". You want to make your offers such that it is a great deal for you to buy if you have to.
Typically you are wanting to pay 70% of the ARV (after repair value) - repairs and - your "fee". If you are truly getting deals that cheap you will have NO problems moving them. Where most people screw up and give wholesalers a bad name is not being able to close because they agreed to pay too much. Also I wouldn't count on getting 10k per wholesale deal. It happens but most people typically average at around 3.5k.