I am wholesaling a bulk deal (9 brand new homes) for $500k. I have never assigned a bulk deal so I have no idea how much I should make my assignment fee be. Can anyone give me some suggestions on how much my assignment fee should be so I dont cheat myself.
Thanks
Are these homes in the same neighborhood or street? It depends on what the numbers look like for these homes. From past exp., bulk deals have never panned out, but it just may work. Where are the homes located? What are the asking prices for all the homes, and what are their ARV’s or FMV’s? Are they all completed, ready to go or do they need cosmetic things to get them livable? Do you have to sell them as a package, or can you do it individually?
How did you find this package?
9 brand new homes ( with no repairs needed) all on the same block. In northern California. Asking 1.4 million, FMV is 2 million, but (joint venture). My buyer will come up with 500-700k. They have to be sold in a package. With all the info, can you give me a suggestion on how much I should ask for my assignment fee?
Ok, there are at least 3 different amounts here. One is the value, which is $2 Mil. There's the asking price of $1.4 Mil, which puts the deal at 70 cents otd. (not including wholesale fees). There's also an amount from $500 mil to $700 mil from your buyer. That leaves $700 to $900 mil. left, looking like this:
ARV = $2 Mil.
Asking Price = $1.4 Mil.
Buyer comes to the table with $500k to $700k
Is $500 to $700k the buyer's offer? :huh I am a little confused on this. What is the original contract price, and your wholesale price? What is the other wholesaler's fee?
On a typical bulk deal, it's usually 1% fee to the buyer's rep, and 1% fee to the seller rep. (as long as the buyer agrees to it), making it 2% of the final purchase price. Or, both of you could Share 1%. There are at least 2 ways you could structure this, and make the deal work.
The main point I want to make is to not get greedy with the wholesale fees on something like
this. There’s plenty of money to go around, but if you make the buyer happy, they will keep doing
deals with you. :deal
These properties are not on the mls so there are no realtors involved.