85% or less Rule? Minimum profit amount.

[Nicholas Bravo]

I'm confused and frustrated at the moment. I've been told that one should try to get the seller down to 85% or lower of the property value. So far no deals from that. I have gotten some skinny deals where I'm gonna get less than $10,000 profit on each. I know Michael Quarrels and others heavily promote the 85% rule but I'm not sure how to get sellers, especially on craigslist to drop prices that much. I've had several people tell me that a deal isn't worth it if one doesn't make minimum $25,000 on it. 

Yeah, I'm using Mike's model and am paying closing costs, fees, etc. Paying all cash, etc. But still can't get people to bite. Personally for me at my income level, I'd be stoked to make $5,000 on a deal. I get how that's not feasible for most. I've been doing the direct marketing off craigslist and do plan to re-enroll in Mike's Gold Coaching Program when I have the money to do so. But for now I need some advice, encouragement, and real world knowledge so i can start making money. 

[Ned Carey]

@Nicholas Bravo I have never hear of the 85% rule, 85% of what?  Is it list price, asking price, after repair value of a  fixer upper, market price of a property in good condition, market price of a property that need significant repairs or the assessed value. All of these would bring different results. 

You also didn't say what are you going to do with the property.  Will you rehab it, hold it for a rental or wholesale it. If you are wholesaling it who are you selling to and what are they going to do with it.

I've had several people tell me that a deal isn't worth it if one doesn't make minimum $25,000 on it. 

I never heard that one either. Again what kind of deal. If I am rehabbing I would want at least a $25 K profit but if I would quickly flip a deal I am very happy with 10K.  I bought a house for $2500 and sold it for $5000. I was happy with that.