A guide to the resale side of wholesale deals
WholeResale is an independent educational site for investors who buy discounted properties and resell them at retail. We explain how to estimate the spread, what eats into it, and how to decide between a quick resale, a full renovation or a hold.
Independent educational site · Not a real estate broker · We do not buy, sell or list properties
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A buy-wholesale, resell-at-retail deal has a simple formula: resale price − purchase price − renovation − holding costs − buying and selling costs = profit. Most beginners focus on the purchase discount and underestimate everything after it. Selling costs alone (agent commission if you list, title fees, seller concessions) commonly take a meaningful slice of the sale price, and every month of holding adds interest, insurance, utilities and taxes.
The practical lesson: model the exit first. Pull recent sold comparables for finished homes in the same neighbourhood, decide what the house must look like to sell at that price, and only then work backwards to the most you can pay.
Paint, flooring, fixtures and landscaping. Lower budget and shorter timeline, but only works when the structure, roof and systems are sound.
Kitchens, baths, systems and layout changes. Bigger potential spread, but more capital, permits, contractor risk and months of holding costs.
Rent the property while the market or neighbourhood improves. Adds landlord responsibilities and depends on rents covering the carrying costs.
Pulling comparable sales and adjusting them to estimate after-repair value.
Read →Turning an ARV estimate into a maximum purchase price.
Read →Run purchase, repair and resale numbers in your browser.
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