Determining my profit?

[Jordan Solomon]

Hi. One thing I'm still confused about how to come up with my own profit amount. I always hear, of course, that you take 70% of the ARV and then subtract repair costs and then your profit amount, but how do I come up with that profit amount? Is it just "what I want to make," or is there any kind of objective rule of thumb to determine how much is "fair" to target? Thank you.

[J Scott]

My suggestion is to work backwards -- figure out the most you can sell it for, and then determine how much of a profit that would realistically leave you if the buyer purchased based on the 70% rule (or whatever formula your buyer will use).

If that profit amount is worthwhile to you, it's a reasonable deal for you to pursue...

The deal will determine your profit, not your desires -- the better you negotiate the deal, the more profit you will make.