Updated over 4 years ago on . Most recent reply
Just getting started with wholesaling confused on ARV formula
So I’m just getting started with wholesaling in realestate. So far I’ve been looking at videos (mainly Jerry Norton and a few other gold nuggets but not gurus), I’ve joined Facebook groups, telegram groups and now bigger pockets. I’m trying to be a good wholesaler I don’t want to be one of the bad ones that overprice deals.
I've also started up an LLC and I am working towards getting my realestate license even though I am in a state where I don't NEED to have it for wholesaling. But I'm taking everything seriously and just trying to understand what I'm doing before going in.
I’ve also got propstream and I’m setting money aside for skiptracing and post cards.
Which brings me to my question.
So I understand how to estimate repair costs. I understand how much paint/carpet, kitchen/bathroom update, roof and foundation, etc should cost.
And I get you factor that into your MOA.
What has me lost is how do I find out the percentage that I use? From what I gathered .70 is the norm.
However with covid things have changed. Some are going .80 or even higher for a discount?
Not only that, it depends on your market and sometimes the buyers preference.
how would I know which amount to use? No one is really explaining that bit.