How much of a profit should be inside of a wholesale deal on the buyers end after repairs are done?
When evaluating a Wholesale deal, I use a calculator that helps me evaluate the (1) holding time from acquisition to selling retail, and (2) the total financial costs of the project (after getting several estimates)
I always look to buy a property at 0-50% of ARV, and assume the (more major) rehab will be roughly 25% of ARV, leaving 25% "gross profit" to cover expenses like borrowing costs (loan interest, fees, property taxes, insurance, utilities), and selling costs (buyer/broker commission, selling concessions) On occasion a property will only need 10-15% of ARV for rehab/repairs, but that's rather uncommon.
If you leave that 25% of ARV for the Rehabber to keep, they'll ultimately profit roughly 10% of ARV for their "take home" earnings.
Excited to see a few of your deals!
@Christopher K. Anderson Jr. there is a calculator under the "TOOLS" tab that is a good guide. FYI, different buyers have different profit requirements. The way you worded your question, is not a way to look at it, but use the BP calculator as a good start.
@Nathan Platter , you are wholesaling properties in your market at less than 50% ARV?? If so, that's great!