Wholesale Calculator Tutorial
The Wholesale Calculator is very similar tool to the Rehab Analyzer...because like the rehab analyzer, it is used to determine the maximum purchase price you should offer for a property…
But there is one key difference….
As a wholesaler you need to purchase a property at enough of a discount to account for a rehabber’s profit and your wholesale assignment fee as well.
So let’s think of this from a Rehabbers perspective…because as a wholesaler you need to know what a rehabber would be willing to pay for the property in order to complete a successful wholesale deal…
So as a rehabber, the maximum purchase price I can offer and still make a profit is calculated by taking the ARV , subtracting Fixed Costs, subtracting Repair Costs, subtracting Contingency and the Rehab Profit.
So as a wholesaler, if your are going to buy a property and reassign the contract to a rehabber you must buy the property for less than the rehabbers maximum purchase price in order to make a profit.
So the maximum allowable offer a wholesaler can make for a property is the Rehabber’s Maximum Purchase Price minus your Wholesaler’s Assignment Fee or wholesale profit.
The 70% ticker is a good metric to watch when you are evaluating wholesale deals, because many rehabbers like to buy properties at 70% of ARV before repairs…
The 70% ticker allows you quickly get a barometer and a gauge on where your current #s stand against your rehabbers investment criteria and the 70% Rule