Hard Money Lenders Atlanta MAX Offer

Mashvisor, 7 Ways to Find an Investment Property for Maximum Returns

MAX offer for my FIX/FLIP? – Every day we’re asked, “How much should I pay for Atlanta Hard Money Loans from Hard Money Lenders?” One of our customers has purchased over 100,000 homes with the “65% Rule”

Two Formulas for Wholesale Offers

The 65% Rule for Hard Money Lenders

The 65% Rule calculates an offer price that accounts for the wholesale fee. Using the Fix & Flip formula example, the wholesaler would make an offer of $70,200 and charge a $5400 wholesale fee to the investor buyer (the difference between using a 70% rule and a 65% rule). Wholesale fees are not set in stone and market demand can influence the prevailing wholesale fees that end buyers are willing to pay.

ARV    $150,000          (Value of property after repairs)
Loan (Cost of Funding)      – 6,000 (Origination fees, Closing fees, Interest)
Repairs     – 25,000(All expenses related to renovation)
Holding Costs      – 2,000 (Insurance, Utilities, Taxes, HOA, other)
ReSale Fees      – 9,000 (Realtor Fees – 6%)
.    $108,000ARV minus costs to flip
65% Rule  X         .65
     $70,200
Maximum Wholesale Offer

$108,000  (ARV minus costs to flip) x  .65 = $ 70,200  Max Allowable Offer when Wholesaling in Hard Money Lenders

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