65% Rule

2 Replies

Does this make sense? Do you deduct repairs and closing costs after the 65%.


- 65%


-3500. closing costs

-5000. repairs

= 56,500 * should be your offer

A new "rule"? Ugh.

By your math, yes. By current inventory and market conditions, maybe not. People are finding that in most markets it is very difficult to find something that fits the 70% rule.

@Bryan O. , it's not a new "rule", but rather, a sensible one for those who market to Flippers. Flippers will use the same numbers to arrive at their (70% ARV minus costs) MAO, meaning that @Scott Smull can pocket the difference because he only Offered 65% ARV minus costs! Voila!...

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here