How wholesale math works
Your max contract price = ARV × 70% − Repairs − Your fee
The investor who buys your contract will use something like the 70% rule to decide what they'll pay. Your fee has to come out of that number, not on top of it.
Example
A house has an ARV of $250,000 and needs $40,000 of work. An investor using 70% will pay up to $135,000. To earn a $10,000 assignment fee, you need it under contract at $125,000 or less. The seller is asking $120,000, so there's room.
Accurate repairs protect your reputation
Investors return to wholesalers whose repair estimates hold up. Underestimate repairs and the deal may fall apart, or the buyer won't work with you again.
Common questions
Is wholesaling legal?
In most states, with rules. Some require a license or disclosures when you market a contract. Check your state's requirements.
What percentage do investors use?
Commonly 65–75%, depending on the market and price point.