Free tool

Wholesale offer calculator

Enter an after-repair value, a repair cost, the contract price, and a desired fee. The page returns the maximum allowable offer, the fee ceiling under that offer, and the highest contract price that still leaves the fee. If the contract is already above the offer, the page shows the shortfall and no fee. The arithmetic is the same 25/5/3 offer the report uses. It runs in the browser. Nothing you type is uploaded.

This page is the offer worksheet. It puts the ceiling and the fee on one screen. It does not explain how to start a wholesale business. The dollar figures in the written examples below are invented so the subtraction can be checked by hand. They are the same worked example as the assignment-fee guide. They are not a closed sale, not a quote, and not a fee to copy onto the next property.

The formula, written out

The maximum allowable offer equals after-repair value minus repairs, minus a profit reserve, minus a closing reserve, and minus a holding reserve. Each reserve is that percent of ARV, rounded to the nearest dollar before the subtraction. The offer itself is rounded to the nearest dollar. The starting percents are 25, 5, and 3. Repairs are a dollar amount you type. They are not a percent of ARV. Change a percent when the buyer you are checking uses a different cushion. The MAO calculator stops at that offer. This page continues from the offer to the fee.

The fee ceiling equals the offer minus the contract price, and only when the contract is at or under the offer. Contract price plus fee is what the buyer pays. That payment has to be at or under the offer. A fee above the ceiling puts the buyer past the price their own formula allows. The other direction subtracts a desired fee from the offer. That difference is the highest contract price. If the difference is below zero, the fee does not fit. There is no contract price that still leaves the fee inside the offer.

The fee is not the buyer’s flip profit. Profit, closing, and holding already came off the ARV before the offer was set. The fee is a cost to the buyer on the day they take the contract. What they later clear after repairs, carrying costs, and a sale is a different calculation, and this worksheet does not run it.

An invented ceiling, the same one as the assignment guide

This check is invented. It is the same worked example as the assignment-fee guide. After-repair value is $200,000. Repairs are $40,000. Those are the defaults on the form above, with profit at 25 percent, closing at 5 percent, and holding at 3 percent.

• Profit reserve is 25 percent of $200,000, which is $50,000.
• Closing reserve is 5 percent of $200,000, which is $10,000.
• Holding reserve is 3 percent of $200,000, which is $6,000.
• The offer is $200,000 − $40,000 − $50,000 − $10,000 − $6,000 = $94,000.
• Contract price is $80,000. The fee ceiling is $94,000 − $80,000 = $14,000.
• Desired fee is $10,000. The highest contract is $94,000 − $10,000 = $84,000.

A fee of $14,000 leaves the buyer exactly at the $94,000 offer. A fee above $14,000 on these inputs puts the buyer past that ceiling. The $10,000 fee fits, and the highest contract that still leaves it is $84,000. Contract price plus fee is the buyer’s payment: $80,000 + $14,000 and $84,000 + $10,000 both land on $94,000. Neither figure is the buyer’s flip profit. The $106,000 between the $200,000 ARV and the $94,000 offer is the rehab plus the three reserves.

An invented contract that is already above the offer

Keep the same invented $200,000 ARV, $40,000 repairs, and $94,000 offer. Change the contract price to $100,000. The contract is $6,000 above the offer. That $6,000 is a shortfall. There is no fee. The page labels the gap as a shortfall and says no fee. It does not present the gap as money you can collect.

The desired fee does not create room that the offer does not have. On this $94,000 offer, a desired fee of $100,000 would need a contract price below zero. The fee does not fit. Lower the fee or leave the worksheet. Raising the ARV to make the fee fit is outside this page. The ARV has to come from sold comps. How to pull comps is the weight table the report uses, so a list price does not become the buyer’s ceiling by being typed into the after-repair value field.

What this worksheet leaves out

It does not coach you on finding a seller, and it does not include an assignment-contract template. It does not include testimonials. It does not tell you that a buyer exists at the offer, or that a seller will accept the contract price. Those are facts about a property, not outputs of the subtraction. Marketing cost, fuel, and time can change the fee you want. They do not raise the offer. If the fee you want is larger than the gap between a realistic contract and the offer, the formula has no extra pocket to take it from.

The reserves are percents of the ARV you typed. A buyer who uses a higher profit percent has a lower offer, and the $14,000 ceiling on the invented example does not transfer until you change the percent and read the new offer. Loan interest, lender points, and a repair bill above the number you typed are also outside the fee. Add them before you treat the ceiling as cash you will receive. The assignment guide walks one static ceiling. This page is the calculator for the same subtraction, including the shortfall case and the highest contract.

Questions

Where to go next

• Build the offer on the MAO calculator if you only need the ceiling.
• Read the assignment-fee guide for the same invented ceiling, written out as a worksheet.
• Read how to pull comps before you treat a typed ARV as the buyer’s number.

Open the sample analysis after you sign up. The sample uses invented figures, the same way the $200,000 example on this page is invented.