Wholesalers/Flippers in San Diego
Im a noob in real estate but have been studying my butt off for the last month and a half. I believe I have a pretty firm grasp on the concepts and procedures to get a deal done. However, doing the math based on the numbers I see on bandit signs here, wholesalers aren't calculating 70% of ARV. It looks more like 85%-90%. Houses here are obviously way more expensive than other markets so the profit margin could still be decent on a $600,000 property with that formula. Can any other San Diego flippers/wholesalers confirm that you are using a different formula other than the standard 70% to calculate profitability or am just seeing wholesalers not negotiating hard enough and not building good rapport with their sellers?