What formula do REI's use to calculate

2 Replies

If I assign a property to a real estate investor, what is the formula, the calculation that a investor would perform manually or with a calculator to determine what would they pay out on deal where there is a spread of $60k, this way I can calculate what the minimum payout should be for me and what the maximum I can possibly get, if not too much trouble can you provide an example ...

Just to ditto Charles and add one thing. Learn what your customers want. Find out what a rehabber in your area is wanting. They might not use percentage based formulas. They might utilize a base profit margin. Find out exactly what they are looking so you will know exactly what you are looking for.

I would recommend that you attend your local REI clubs to network with local rehabbers. You can get valuable information there about what investors in your area are looking for.