New to Real Estate · Louisville · Member since 2023 · 6 posts · 1 vote
Hello all,
I know the 70% rule. Is the 30% the end buyers desired profit. Or is that 30% have all their expenses excluding repairs cost? I’m asking after using wholesale calculator here on BP.
The 30% is an imaginary number, much like the 70%, that means nothing. The goals you set should be based on numbers with dollar signs in front,...not percentage signs behind. These percentages tell you nothing of value, and most of the time will lie to you anyway.
Build yourself a financial REI plan, based on a set of specific financial goals (not percentages), ...something that is measurable and means something.
Now before someone writes that these percentages are just guidelines, and not actually rules, my answer to that is "why bother with them then". Guidelines for what? To tell you if your should analyze that property or not? Why don't you just analyze that property for real,...instead of wasting your time doing an analysis to tell you if you should then do an analysis.