Riverside, CA · Member since 2017 · 3 posts · 0 votes
what would be the best way to determine how much of a fee one will charge as a wholesaler? I'm sure there's plenty of choices so I'm curious to see everyone's input. Would you base it off the purchase price and how much room you have in order to make the sale? All feedback and opinions are welcome as I am a rookie wholesaler just getting my feet wet.
I'm not a wholesaler, but your reputation is everything. You need to help the homeowner, and give a fair price (not take advantage of their equity) to solve their problem, make some $ and leave enough meat on the bone so that investors will buy it from you.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Hector Caballero In a wholesale transaction you want to sell your interest at a price that makes sense for the buyer. Meaning, you put the property under contract at 60 -70% under market value and sell your interest at around 80 - 90% leaving the buyer with at least 10- 20% equity position at closing. If the property needs work you must include the repair cost in your original OTP. Obviously these numbers are ball park and every deal is different. There will be some deals that make sense to an end buyer at market value. I hope this helps. And I'll add that I wholesale in a market that's 750 MI away from where I live. So that should tell you that anything is possible as long as you have systems in place to get deals done. Always remember to persist and you will WIN!!!!
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Hector Caballero anything is possible my friend. I will say that I also invest in the market I wholesale in. And I'll add that I spent 18 months in that market prior to starting my portfolio and or wholesaling. Although wholesaling is possible locally you will need to invest in a solid team and systems to make it all work. Persistence my friend.