Wholesaling
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Creative Real Estate Financing
presented by
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply
What does "cents on the dollar" mean?
I'm hoping this isnt a stupid question but what does a wholesaler mean when they say you need to buy "so and so" cents on the dollar? How do I estimate that? How do I figure out my equity range and or potential profit from a sale price and ARV? Is there a simple math equation I can follow
Most Popular Reply
Greg Dickerson
#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
- 4,401
- Votes |
- 4,756
- Posts
Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
Cents on the dollar or pennies on the dollar is simply a discount.
You want to buy at minimum 65-70% ARV minis the repair costs. This will leave you a 20-25% profit after other expenses.