Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago on . Most recent reply

User Stats

9
Posts
2
Votes
Tony Guard
2
Votes |
9
Posts

75% ARV rule - How to be morally ok asking for extremely low valu

Tony Guard
Posted

So I have heard both Brandon and David talk about their rule for brrrr investing. The rule I'm primarily speaking to is the 75% ARV

(After Renovation Value) rule. This means they are probably buying the house close to 50% less than the final ARV from the start. ( ex- final ARV of 100k means after Reno investor has 75k in property and if Reno is 25k that's a purchase of 50k). Where I'm struggling is asking someone to sell their home at such a drastically reduced rate even for prerenovation. I'm wondering if most folks are getting these properties from lenders/ through foreclosure/ or from private individuals? It seems through the podcasts I've heard, it's through individual owners ( off market or MLS). If from an individual, does anyone have a general rule/formula that can provide comfort to a seller they are being treated fairly? My concern are some of the people I have heard on the podcasts talk about being "likable" etc but don't speak to a fair deal... just a great deal.

Loading replies...