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4d • General discussion 🗣
The Math Behind Every Good Deal
Most wholesalers don’t lose deals because they can’t find leads.
They lose deals because they don’t know how to make the right offer.
They either offer too much and can’t sell the contract…
or they offer some random number and wonder why buyers ghost them.
Here’s the simple formula:
ARV × 70% − Repairs − Your Fee = Maximum Allowable Offer
That’s your max offer.
Not your dream number.
Not the seller’s asking price.
Not what you “feel like” it’s worth.
Your max.
Example:
ARV: $200,000
$200,000 × 70% = $140,000
Repairs: $30,000
$140,000 − $30,000 = $110,000
Your assignment fee: $10,000
$110,000 − $10,000 = $100,000
So your max offer is:
$100,000
Now here’s why the 70% matters.
That 30% cushion is not random.
It leaves room for the cash buyer to make money after repairs, closing costs, holding costs, mistakes, delays, and profit.
Because if the buyer can’t make money…
they’re not buying your deal.
This is why you don’t just ask, “What will the seller take?”
You ask:
“At what number does this still make sense for the end buyer?”
That’s how you stop guessing.
That’s how you protect your fee.
That’s how you actually get deals sold.
Formula Card: ARV × 70%
− Repairs
− Your Fee
= Your Max Offer
Example:
$200K × 70% = $140K
$140K − $30K repairs = $110K
$110K − $10K fee = $100K max offer
Don’t fall in love with the property.
Fall in love with the math. 💪
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The Math Behind Every Good Deal
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