How Do You Determine Your Wholesale Profit?
I haven't done any wholesaling yet. I'm just starting to gather information. My question is when you find a deal you want to wholesale how do you determine your own profit? Do you start backwards with what rehabbers would want (30%ish margin or so?) and then determine your cut? Or do you start with your margin goal and leave the rest for the rehabber?
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IDK what the formula is, but the "wholesalers" that have sent me leads are asking about 90 pct of retail. Needless to say I haven't bought any of them. Perhaps they are just asking high and expecting a lowball offer. But I think a good wholesaler would be straight up and say Y is my price, X is the ARV, X1 is your closing costs, X2 is your holding costs, X3 is your profit