Nathan Payne compares flipping a discounted property versus wholesaling it. Adjusting repair costs and commission rates to 2.5% yields roughly $25,000 profit on a flip, while wholesaling the same deal could generate $420,000. He shows how to use a deal calculator to weigh repair costs, listing price, and commission rates.
cents. We're going to spend $90 to make $8,766. Not a good deal. Now, what we do is we have an agent that lists it for $1,000. So we zero this out. We just add $1,000 to the repair costs over here. And that's— you can see you can make a little bit more money. And also, instead of paying 3% of the buyer's commission, we do 2.5%. So you would actually— for us, we would've made $25,000 by flipping this property. But for me, I was like, "No, we can make way more on a deal this discounted in such a hot market." So we said, "We're not going to flip this thing." So next thing he says, "What if we wholesale it? Just get it done, get it quick." So we said, "If we wholesale it," we first thought we could make $420,000 on the wholesale deal. And in order to check the wholesale numbers on this calculator,
Why Traditional Wholesaling Keeps Failing You (Use This Pre-Flip Method Instead)
