Calculating an offer price

[Chad J Abel]

Good Afternoon. My name is CJ and I'm a newbie investor. I have a question in regards to calculating an offer price. I have heard many times that a standard is 70% of ARV minus repair costs. obviously that percentage can vary depending on the situation, but my question is when figuring your offer price is the "repair cost estimate" subtracted from the 70% of ARV, deriving your total offer price? Can someone help me understand that a little better? I appreciate your advise. Thank you.