Wholesale Buyers: What's their exit strategy/business model?

[Derek Carroll]

I'm interested in the business model for for investors buying the wholesale properties. Are these cash buyers typically just looking for buy and hold or fix and flip using their own cash? Is there a way to fit hard money into this from a buyers perspective?

My ideal business model would be:
- find local wholesalers to send me leads
- buy at 65% ARV using hard money
- refinance to take out hard money lender
- hold

The big question that I have regarding the above is: is there typically enough margin to buy from a wholesaler using hard money?

[Darrick P.]

I think 65% is very ambitious. I've always heard 70%