Making offers on fix and flip vs BRRRR criteria for offer price

[Michael Wyatt]

Hi everyone. I'm somewhat new to real estate investing. I have been connecting with agents and wholesalers in a few different markets, looking for properties to fix and flip. I am pretty confident in being able to determine an ARV, and I have made a bunch of offers so far and even got 2 under contract (that I backed out of due to rehab quotes being too high and numbers not working because of that).

My question is - what criteria do you use to come up with an offer price that ensures you're getting a good deal? A certain percent of profit based off the ARV? The 70% rule (this doesn't seem to be feasible)?

I have also heard on one of the podcasts that you are able to outbid flippers when buying with the intention to BRRRR. Just wondering exactly how everyone else comes up with an offer price. I would be using a hard money loan by the way.