How do you determine how much profit you earn from a sale

How do you determine how much profit you earn from a sale

Member since 2019 · 46 posts · 5 votes

How do you determine what amount of money you get for assigning a contract on a house when your making a deal I am trying to be a wholesaler and I want to be a decent honest one and not cheat people out of there money but I also want to get maximum profit for a sale I do but I don't know how to go about that

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  • Madison, WI · Member since 2016 · 88 posts · 34 votes
    7y

    As a wholesaler, you need to put yourself in the shoes of the investor, and make sure that you meet their goals. If an investor needs to make a minimum of $20k on a flip, then you need to do the full analysis of rehab SOW, ARV, financing and holding (utility/insurance) costs, etc. and determine what a fair price is for them to make their required $20k. That will tell you how much they are willing to pay for the property. The amount of money you make depends on the difference in their maximum purchase price and how much you have it under contract for.

    Not speaking as an experienced wholesaler, but that's how I'd view it as somebody buying from a wholesaler. Some people say you need to know how to flip houses in order to be a good wholesaler. Good at Scoping running the analysis.

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