Posted by JoeS on February 26, 2002 at 11:34:56:
The way I decide…how much work I put in. I try to get a minimum of 3K, and max out at 5K. Some other wholesalers will make more, but the price of homes will dictate how much. The ones I buy generally are 20-30K.
wholesale mark up - Posted by SteveW
Posted by SteveW on February 26, 2002 at 07:54:40:
How do you decide how much profit you want to make on a flipper? Is there a formula? Thanks!
Re: wholesale mark up - Posted by Steve-DC
Posted by Steve-DC on February 26, 2002 at 12:24:55:
Steve,
Start with what your buyers need out of the deal, their profit. After you take that out and repairs, the rest is for you. The lower you buy, the more for you.
For example, if a home has an ARV of 100,000 and you know you’re rehabber wants to make 30K on every deal, you’re already at 70K. If it needs 20K in repairs, you’re at 50K. Depending on closing costs in your area, subtract that as well…not knowing where you live, lets say you’re at 45K after subtracting rehabber’s profit, repairs, closing, etc. Now is time to figure in your profit. If you can buy at 40K, you’ll make 5K…obviously if you can buy at 35K, you’ll make 10K!
-Steve