any ideas on wholesale price?? - Posted by ed

Posted by ed on October 19, 2003 at 21:08:40:

Thanks to both of you for your input. I should have worded the question differently. I am the seller. I was just trying to figure out how much of a cut I was going to have to take to move it now versus retailing it and waiting 2-3 months.

thanks again for your time,


any ideas on wholesale price?? - Posted by ed

Posted by ed on October 17, 2003 at 21:06:21:

I have a non owner occupied single family in a steadily growing area of central nj. I would probably retail between $235,000-245,000. I’ve read so much here in the last few weeks, but can’t remember what kind of margin a wholesaler works on. Would I be able to find one willing to work at 20%, or would it be more??



Re: any ideas on wholesale price?? - Posted by timeinvestor

Posted by timeinvestor on October 19, 2003 at 13:22:38:

If you intend to wholesale the property to a rehab investor, expect that they will pay MAO(maximum allowable offer)AT THE MOST. MAO is 70% of the ARV (after repairs value) MINUS repairs cost, so once you’ve complete the following formula understand that this is what you should expect to sell it for AT THE MOST.

(ARV X 70%) - repirs costs = MAO

Let’s assume, hypothetically, that your MAO on a property, any property, is $120,000. (arv is $200k times 70% is $140k minus repairs $20k equals $120k)If this is what you expect to sell it for, you will need to get it cheaper to make money. This is where your negotiating comes in. Get it for less to make money. What if you offered $111k in writting and added a deadline of 48 hours. If they are as motivated as YOU NEED THEM TO BE, you will get a call.
Now you have a purchase and sales agreement to get signed. Make sure that you find one that is BUYER oriented. As long as you follow the above, I can’t see how you can lose.

good luck to you.

Re: any ideas on wholesale price?? - Posted by Ali Berkin

Posted by Ali Berkin on October 17, 2003 at 21:32:55:


For a property that retails for 240K, I would offer about 70% minus repair costs, probably about 150K. There are a lot of expenses for any rehabber, not including the repair costs. You need a highly motivated seller to get that property for 150K! Good Luck!