Expect 1-10% of the deal. Unrealistic to expect 50% of the profit and the rehabber gets the other 50%.
Example: 100K ARV house, you can get it under contract for 60K (70%-10K in repairs). Now, how much will a rehabber pay for this house? Not 80K, so don’t think you are going to make 20K. More realistic would be about 3-5K.
Still, not a bad payday for a couple hours work and viturally no risk.
Don’t try and be greedy, Do 3 of those a month, dam*ed nice living. Sleep well at night, and you turn them faster anyway.
Posted by Carole on September 30, 2006 at 12:47:12:
I’m a contract writer currently working on a project about the process of “wholesaling” real estate. Most of the people I’ve talked to during my research have said that an efficient wholesaler can expect to make between $8,000 and $15,000 per deal, but then nearly invariably they offer to sell me a course/mentor me/do the deal for me in exchange for a smaller fee. I’d appreciate any feedback you can give me about the process and also the actual monies involved, as well as a reasonable amount of time that a novice wholesaler should expect their deals to take (again, I’m hearing that you can do this in as little as 48 hours, which seems unreasonable to me considering the paperwork alone). For me, this is research, but my clients are trying to offer a valuable and valid educational product so I’m hoping to find some honest answers in a more educational forum.
Posted by Natalie-VA on October 01, 2006 at 14:36:54:
Carole,
I’ve wholesaled quite a few this year and I average over 15k per deal. Some of these are contract assignments, and some of these are those that I close on and resell quickly. The assignments have taken me a week or two to get paid. The ones I close on take a bit longer since I usually need to do evictions and/or trashouts.
I’m not sure how long it should take for a novice to do this. I’ve been in real estate full time for almost 7 years. Most of the experts tell the newbies to start out wholesaling, but honestly, I could not be as successful without the experience I have under my belt.
