Wholesaling and generl profit question - Posted by Clare Z

Posted by Jim FL on November 28, 2006 at 21:19:51:

I would not call myself a rehabber or wholesaleer, per say, as I use whatever method makes the most sense to get the deal done.
And naturally, all deals have more than one exit built in for profit.

Now, when I do wholesale, the number I use as a ‘bottom dollar’ is $10k.
However, not all ‘deals’ turn out that way.
Last month, someone sold me a MH for $1k, and I sold it the next day, for $6k cash, only making $5k.
This was below the ‘bottom dollar’, on my scale…but, it made sense.
See, just before this seller called, my friend called and told me he was looking for a cheap single wide, because he had the land to place it on, and the equipt to move it.
He also told me what he had to spend, so the details fell into place.

As far as a rehab, the numbers there are more a percentage than a fixed number.
Reason being, I have rehabbed houses in multiple price ranges.
The last one, we picked up for $68k, put $30k into it, and sold for $175k.
A nice deal.
I will not touch a rehab however unless I KNOW, worst case scenario, that there is $25k to be made.
Basically, I make sure the numbers allow for more than that, and buy low enough that the property will sell FAST, as is, and bring in the $25k.

Of course, this number does not work with a home priced at $500k.
There are factors in each deal that are unique, price range being merely one of them.

A good formula to follow, if you must, would be the common one talked about here.
After Repaired Value times 70%, minus repairs and your profit, for wholesale deals.

Anyway, HTH,
Jim FL

Wholesaling and generl profit question - Posted by Clare Z

Posted by Clare Z on November 28, 2006 at 20:53:44:

Do those of you who do wholesaling have a drop dead profit you will not go below? Just curious. And how about rehabbers - same question.



Re: Wholesaling and generl profit question - Posted by Natalie-VA

Posted by Natalie-VA on December 01, 2006 at 13:25:35:

On rehabs, I like to see the profit mirror the rehab cost. A 20k rehab should bring in at least a 20k profit.

On wholesale deals, it all depends what kind of time I put into it. If I don’t have to leave my fax machine, I might take 5k.


Re: Wholesaling and generl profit question - Posted by Antonio

Posted by Antonio on November 30, 2006 at 23:30:21:

I am not sure what your budget is for training/education but I would highly recommend purchasing Steve Cook’s Wholesaling For Quick Cash course, it is less than a couple hundred bucks. If that is out of your budget I recommend going to the archives and doing a search on Wholesaling or Scook85 and you will come up with some awesome information that should get you up and running in the wholesaling business. I hope this helps…