I have broken even on wholesale deals and I have made as much as $34k. Of course the $34k is the exception to the rule, but I guess I did everything right in that situation.
I like to make about $5k per deal. I shoot for $8-10k per deal so if I make a mistake I may end up with $3-5k.
When starting out, I used to shoot for $2k profits, those were the deals that I settled for break even at times. I see beginners getting into $150k homes with the intent of wholesaling for $2k profit. That is a major risk on a home priced that high. I'd shoot for $10k profit at least even on the wholesale side.
When wholesaling, if you do not want to buy the home yourself, you need to make sure it is a no brainer. When I wholesale deals today, I KNOW that they are going to sell right away and I KNOW how much I'm going to make. Of course I have done many deals, I have a buyers list, and I know where the money is coming from and how much buyers are going to be able to get to do the deals.
Leonard,
When done right? That is a tough question.
I have broken even on wholesale deals and I have made as much as $34k. Of course the $34k is the exception to the rule, but I guess I did everything right in that situation.
I like to make about $5k per deal. I shoot for $8-10k per deal so if I make a mistake I may end up with $3-5k.
When starting out, I used to shoot for $2k profits, those were the deals that I settled for break even at times. I see beginners getting into $150k homes with the intent of wholesaling for $2k profit. That is a major risk on a home priced that high. I'd shoot for $10k profit at least even on the wholesale side.
When wholesaling, if you do not want to buy the home yourself, you need to make sure it is a no brainer. When I wholesale deals today, I KNOW that they are going to sell right away and I KNOW how much I'm going to make. Of course I have done many deals, I have a buyers list, and I know where the money is coming from and how much buyers are going to be able to get to do the deals.
I hope this helps.
[addsig]