70% rule offers, always?

[Pete Storseth]

Making the 70% ARV offer minus repairs is the #1 rule, but what variations of offers have you guys made that made sense for all parties involved.

I'm opening this thread with the hope of BP investors to share interesting stories and creative offers they've made happen.

[Kenneth Garrett]

@Pete Storseth

I do not use the 70%, 50%, 1% rule(s) as they are guides only.  I believe in actual numbers.  Purchase price minus rehab minus holding cost minus profit to get your number.  The 70% rule is for flipping properties.  I did a flip recently 

Purchase 110,000

Rehab 12,000

Holding cost 5000

Profit 20,000

Sale/ARV 159,000

70% of 159,000 = 111,300

Rehab 12,000

Asking price would be 99,300

I would have missed the 20,000 profit, since we would have been outbid.

Just use actual numbers.  The 70% rule is truly a guide for quick napkin math.