recommendation for wholesale price?

Question

Hi everyone,

Wanted to get some recommendations on what I should ask as a wholesale fee for this property I’ll have under contract soon. Here are some details

Prime location in an great-hot market / residential property being used as a student rental currently. zoning has many opportunities multiple dwelling and commercial. purchase price 590k ARV could be 875- 1 mil depending on which strategy taken could be slightly more. Property as it stands is worth low 700’s

On the fence on taking it on my self but wanted to see what a seasonal wholesaler would charge for something like this

Yoann Dorat · Answer

@Nino Novak you can probably move it around 630k to 650k if your ARV is correct (however it’s a large gap from 800k to 1mil).

Keep in mind that you will probably need to do a double-closing as most cash buyer will get cold feet if they see an assignment fee larger than 15k on the HUD.

Nino Novak · Answer

Hi @Mason Hickman, yes that’s what I meant if it got listed or appraised would come in 725-750 as is. With cosmetic work I could see it come in lower end of arv

What’s attractive is if one did a triplex conversion, 330-400k is the price per door in the area

Mason Hickman · Answer

@Nino Novak

(ARV x 70%) - Repair costs - purchase price = wholesale fee

When you say property as it stands is worth low $700s, are you thinking it is worth that for sale to retail buyers? From a flippers perspective, it won't be worth low $700s if ARV is $1M at the high end and there is work to be done.