Updated about 12 years ago on . Most recent reply
What factors determine the wholesale offer?
Hi guys-
In my transactions I have the buyers paying all the closing cost.
As you know, to arrive at the acquisition price we subtract the repairs and the assignment fees from 70% of the ARV.
But how about the closing and holding cost how are those cost handled? Do we act like those expenses don’t exist? They are part of the end buyer’s cost you know.
But the problem is that if I keep reducing that already reduced price, there is not going to be much left to acquire the property.
How do you guys handle those additional expenses?
In my transactions I have the buyers paying all the closing cost.
As you know, to arrive at the acquisition price we subtract the repairs and the assignment fees from 70% of the ARV.
But how about the closing and holding cost how are those cost handled? Do we act like those expenses don’t exist? They are part of the end buyer’s cost you know.
But the problem is that if I keep reducing that already reduced price, there is not going to be much left to acquire the property.
How do you guys handle those additional expenses?