Flipping in DFW market

[Amir Khan]

This is addressed towards experienced flippers who currently flip in DFW market. We have been trying to find deals that following simple formula: OFFER PRICE= ARV x 07-repair costs. But looks like most wholesalers are bringing deals to market that are well over this number. So my question is:

1. Do you ever buy properties for flipping (rehab/retail sale) at price that is more then the offer price formula above? If so, does that mean you are making less profit?

2. You only buy properties for flipping at price at or below the offer price formula above. If that is the case, do you buy from wholesalers or do you source your own leads?

Thanks.

[James H.]

If it does not fit into that formula, do not do it.  Do not follow the crowd off of the cliff.  Our experience is that the formula is pretty accurate.