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Updated almost 5 years ago on . Most recent reply

Juan Castro's profile image
Juan Castro's profile image
Juan Castro
  • Investor
  • from Chicago, IL
  • Member since Sep 24, 2017
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15
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5
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Juan Castro's profile image
Juan Castro's profile image
Juan Castro
  • Investor
  • from Chicago, IL
  • Member since Sep 24, 2017
Connect
Juan Castro
  • Investor
  • Chicago, IL
5
Votes |
15
Posts
Starting Out

Significance of 75% when calculating the offer amount?

Juan Castro
  • Investor
  • Chicago, IL
Posted

I've read a few articles where they talk about figuring out the maximum offer amount (ARV * 75% - Repair Cost = Offer Amount) but they don't go into detail as to the relevance of 75%. What does this percentage represent? Also, is this where you cover other costs (holding, closing, etc)? Lastly, how does this percentage change depending on strategy (Buy & Hold through BRRRR vs Flipping)?

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