Using the 70% rule on fix/flip.

[Brian Brown]

Looking for a little clarity on the 70% rule when flipping. Everything I've read or watched about yet subject states buying at 70% below ARV then subtracting rehab cost equals your purchase price. Others state the same but also subtract the profit you'd like to make. Which is correct 🤔 if we are already buying at 70% below ARV is this not our build in profit?

[Wayne Brooks]

Yes, but it's 70% Of ARV, minus repairs....not 70% Off ARV. The 30% of ARV is supposed to cover your closing costs, carrying costs and profit.