Simple Math Question - Flipping/Wholesaling
Just say I have a house under contract for 314k and it has a potential to sell for 430k after 30k of repairs.
That is 86k gross profit after repairs.
What I want to do is assign the contract for 5 - 10% of the potential profit which is 4300 - 8600.
Am I right or should my fee be 5 - 10% of the profit after closing and realtor fees, etc?..which is more like 2150 - 4300 if you assume 6% realtor fees and 4% closing costs.
What is the typical percentage or guidelines you pros use for your assignment fees anyway?
Some feedback will be useful.
Thanks, Jeremy
That is 86k gross profit after repairs.
What I want to do is assign the contract for 5 - 10% of the potential profit which is 4300 - 8600.
Am I right or should my fee be 5 - 10% of the profit after closing and realtor fees, etc?..which is more like 2150 - 4300 if you assume 6% realtor fees and 4% closing costs.
What is the typical percentage or guidelines you pros use for your assignment fees anyway?
Some feedback will be useful.
Thanks, Jeremy
Comments(0)
Is this a hypothetical question, or do you really have this property under contract?
If this is a property you already have under contract, you can always try to wholesale it for a $5K assignment fee.
If you have the resources, with these numbers, you would do better to buy the property, do the rehab, then resell the property at a discount to ARV (perhaps $395K) to induce a quick sale.