Wholesale
Profit Calculator
Calculate your maximum offer price and projected profits on wholesale deals using the 70% rule and MAO formula.
Understanding Real Estate Wholesaling
Wholesale deals involve purchasing properties at a discount and quickly reselling them to other investors or owner-occupants for a profit. This calculator helps you determine the maximum price you should pay (MAO) using industry-standard formulas and profit targets.
Key Wholesale Concepts
Calculate Your Wholesale Deal
Typical buyer expects 15-25% profit
Deal Analysis
Maximum Offer Price
$157,000
Total Costs
$83,000
Your Wholesale Fee
$10,000
Net Profit
$60,000
- Max Offer Price52%
- Project Costs (repairs, closing, holding, selling)24%
- Your Wholesale Fee3%
- Buyer's Profit Margin20%
Wholesale vs. Fix-and-Flip
- →Wholesale: Quick sale to another investor, less capital needed, 7-14 days to close
- →Fix-and-Flip: Complete renovations, longer timeline, more capital tied up, higher profits
- →Wholesaler Fee: Typically $5,000-$20,000, added to buyer's maximum offer
- →70% Rule: Standard for wholesalers: 70% of ARV minus repairs = max offer
Critical Success Factors
- ✓Accurate ARV estimation: Comparable sales in the market, not wishful thinking
- ✓Detailed repair estimates: Get contractor bids, not rough guesses
- ✓Account for all costs: Closing, holding, selling costs eat into profits
- ✓Build buyer relationships: Your end buyer's profit needs drive your offer price
💡 Wholesale Pro Strategy
Successful wholesalers maintain a network of cash buyers and flippers ready to purchase. Build your buyer list, understand their profit requirements (typically 15-25%), and always use the 70% rule as your baseline. Properties under 65% LTV offer the best wholesale opportunities. Close quickly with minimal contingencies to attract buyers and negotiate favorable assignment fees.
Wholesale Financing Solutions
Many wholesalers use short-term ARV / fix-and-flip financing or cash to secure properties quickly, then use our flexible lending programs to fund rehabs once the deal is assigned to an end buyer.
Wholesale Deal Examples
Conservative Deal
Mid-Range Deal
Premium Deal
Get Pre-Qualified in Minutes
Our specialists review applications in minutes. No income documentation required. Closing in as little as 3 weeks.
- ✓ Pre-qualified in minutes
- ✓ No income documentation
- ✓ Closing in as little as 3 weeks
- ✓ Competitive rates for qualified borrowers
5-minute application • Commercial Lending by New City Financial