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.

Lösungsbeispiel

ARV $300,000, rehab $40,000. Contract price $160,000, assignment fee $10,000. End buyer faces 12% closing/holding costs.

  1. End buyer purchase price: $160,000 + $10,000 = $170,000
  2. End buyer closing/holding: $300,000 x 12% = $36,000
  3. End buyer total cost: $170,000 + $40,000 + $36,000 = $246,000
  4. End buyer profit: $300,000 - $246,000 = $54,000
  5. End buyer ROI: $54,000 / $246,000 = 22.0%
  6. MAO at 70%: $300,000 x 70% - $40,000 = $170,000
  7. Your assignment fee: $10,000