Is 70% - Repair costs still the standard for a good deal?

Question

Hey BP,

I know market by market you will find different numbers. However, I was wondering if 70% is starting to become too good to be true?

Are regular wholesalers out there starting to see that deals closer to 80% - RC are happening more frequently?

Thanks!

Jordan

Andy Chu · Answer

It really depends on price point. For a 20K property, it wouldn't even be worth it. For a 500,000 property, Im sure they can go up to 85% because the numbers are bigger.

John D. · Answer

I've seen the price of non-financeable REOs, even occupied REOs, move from 70% to 90% or so here, over the last 6 months or so (and it's pretty scary to buy a site-unseen property in cash with no inspections at only a 10% discount)!

I would suspect wholesale and other deals are moving up from 70% as well.

Is 70% - Repair costs still the standard for a good deal?

2 Replies