$$ HOW MUCH $$

 Hi all-

Not wanting to leave any money on the table…is there a percentage wholesalers use in charging assignment fee’s to buyers? I don’t wanna be pulling amounts out’a the air that maybe too high or too low. Whats the norm for setting a price? Would it be the same for rehabbers as it would for landlords?

this is my opinion: depends on the deal. If you have $50k in a place and you KNOW you can sell it easily for something like $70k, DO IT! If you went by some 10% or flat rate of $5000 you are leaving money on the table. On the flip side, you may have something for $400k and then 10% and $5000 is a HUGE difference. So I say just sell it for what its worth, not just a set markup.

The important thing is to make sure your end buyer has plenty of profit in the deal. I don’t think too many rehabbers/landlords get hung up on what you personally are making on the deal. You just have to make sure that you are leaving them profit. This way, they will never mind coming back to you for another deal in the future.

You need to figure out what % of ARV your investors are buying properties at. It’s going to vary, but I am guessing they will all be relatively close in a single area. If your area investment properties are being bought for around 60% minus repairs, your offers should be based on this information. It’s all about buying the property right in the first place.

as long as the total cost of the deal, rehab, purchase, marketing, holding, closing costs and your wholesaling fee fits within the number that the buyer is willing and able to pay, your fee shouldn’t be an issue. If your buyer is getting financing for the deal then you’ll want to make sure that the number is not eye popping or the lender could kill it.

I try to set a minimum fee based on either percent of sales price or a flat fee if less than $50k. Start small with say at $2500 or 5% of buyers purchase price and work your way up as you get more comfortable.

Best of luck