Wholesale Deal Rechner — Formel
## Wholesale Real Estate Deals
Wholesaling involves getting a property under contract at a low price and assigning the contract to an end buyer (flipper or landlord) for a fee.
### How It Works
1. Find a distressed property below market value
2. Get it under contract with the seller
3. Find an end buyer willing to pay more
4. Assign the contract for an assignment fee
### The Assignment Fee
Your profit is the difference between your contract price and the end buyer's price. Typical wholesale fees range from $5,000 to $20,000 per deal.
### Making the Deal Work for Everyone
The deal must leave enough profit for the end buyer. Use the 70% rule: the end buyer's total cost (purchase + rehab) should not exceed 70% of ARV to ensure adequate profit margin.
Wholesaling involves getting a property under contract at a low price and assigning the contract to an end buyer (flipper or landlord) for a fee.
### How It Works
1. Find a distressed property below market value
2. Get it under contract with the seller
3. Find an end buyer willing to pay more
4. Assign the contract for an assignment fee
### The Assignment Fee
Your profit is the difference between your contract price and the end buyer's price. Typical wholesale fees range from $5,000 to $20,000 per deal.
### Making the Deal Work for Everyone
The deal must leave enough profit for the end buyer. Use the 70% rule: the end buyer's total cost (purchase + rehab) should not exceed 70% of ARV to ensure adequate profit margin.
Lösungsbeispiel
ARV $300,000, rehab $40,000. Contract price $160,000, assignment fee $10,000. End buyer faces 12% closing/holding costs.
- End buyer purchase price: $160,000 + $10,000 = $170,000
- End buyer closing/holding: $300,000 x 12% = $36,000
- End buyer total cost: $170,000 + $40,000 + $36,000 = $246,000
- End buyer profit: $300,000 - $246,000 = $54,000
- End buyer ROI: $54,000 / $246,000 = 22.0%
- MAO at 70%: $300,000 x 70% - $40,000 = $170,000
- Your assignment fee: $10,000