Underwrite for the end buyer
A wholesale opportunity must make sense for the buyer who will own or renovate the property. Estimate the buyer’s supported exit value, repairs, financing, holding and resale costs, and required margin. Then consider your fee within the remaining economics.
Do not substitute a large buyer list for verified demand. Learn which buyers can fund, what they buy, and the condition they accept. Share accurate property information, limitations on access, and the exact interest offered.
Inflated values and understated repairs may produce initial attention but often fail during diligence. Give buyers enough evidence to evaluate the opportunity independently. Keep seller and buyer expectations aligned with the documents and deadlines.
A buyer’s maximum all-in acquisition amount is $105,000 after its own costs and margin. At a $100,000 seller contract price, only $5,000 remains for a potential fee before additional transaction costs.
Decision checklist
- Analyze the deal from the end buyer’s perspective.
- Show evidence supporting value, repairs, and access limitations.
- Check that the fee leaves a workable buyer margin.
Check your understanding
If the buyer can pay $105,000 and the seller contract is $100,000, is a $10,000 fee supported?
Show the answer
No. Only $5,000 remains before additional transaction costs under those assumptions.
Your next action
Build a buyer underwriting sheet with evidence for value and repair estimates.
Original teaching framework and hypothetical example. Source directory and editorial approach →