Looking at wholesale examples, a typical scenario seems to be something like:
ARV 100,000
Repairs 10,000
Wholesaler profit 5,000
Buyer’s price 40,000
I can see how these numbers work for many markets but in NY and LA it must be more like this:
ARV 500,000
Repairs 35,000
Wholesaler profit 15,000
Buyer’s price 250,000
How come I never read about these types of numbers? Do people not wholesale in the expensive markets?
I just relocated to the LA market. I’ve been here going on 6 weeks now. I am a licensed realtor from Cleveland, Ohio and am waiting for Cali license to be ready.
That said, I don’t have a lot of experience with this LA market. I would be guessing, but I think that it is safe to say. Wholesaling IS going on here. And while the numbers may be somewhat skewered on a curved scale, it’s still profitable here for all of the parties.
I’ll know soon enough if that is correct!
All the best,
~Slim~
Never really dealt in the LA market, I can only imagine that the profit spreads are huge.