Help Me Understand: Flippers this one is for you!

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Good morning BP members,

I am trying to understand something from those of you who purchase properties to flip.

The formula for a wholesaler has always been 70% of ARV minus repairs minus the assignment fee. Obviously, it will differentiate by how competitive the market is. In some states, it might be 70% and others might be 75%.

My question to you all is when I take the ARV and times it by whatever that percent is, let's just say 70%, what exactly am I taking into account in that 70%. Holding Costs and the profit that you are looking to make?

Thanks in advance!