94% formula

[Al Sousa]

Has anyone used this formula before and how does it work?
Have problem with having offers being except with the tradition rehab formula of 65 70 % of ARV.
Any other ideas welcome
Thank you

[Steve Babiak]

Originally posted by Al Sousa:

I did an offer , where the property asking price is $174,900.000 needs about $70k the ARV according to MLS comps is $335,000.00
I offered $129,850.00 no inspections or contingencies and closing in 30 days or less.
Also this is private money at 8% 2 points

You need to improve your math skills or get a better calculator or spreadsheet.

70% of ARV minus repairs with the numbers given in the quote here works as follows:

0.7 x 335K - 70K = 164.5K

You're making an offer around 35K less than that ... while everybody else is offering more, so of course you won't get too many accepted.