Updated over 7 years ago on . Most recent reply
ARV
Hello ,stilling learning and reading the REI ,I'm a little confused on the percentage you have to use when making a deal for a wholesale.Does it depends on how much the property is worth?
Most Popular Reply
ARVx70%-Repairs-your fee=MAO (Maximum Allowable Offer)
For example...you find a property that's worth $100,000 after repairs.
It needs $15,000 in repairs.
You want to make a $5,000 wholesale fee.
Your formula would look like this... $100,000 x 70% - $15,000 - $5,000 = your maximum offer of $50,000.
Although, 70% is a rule of thumb, I usually start at 60 - 65%