Real estate investing

[William Christopher West]

Hey im a new investor and just curious, i see the 70% investor discount for most places. i was wondering if kentuckys discount % was any different or what. Trying to figure it out, thx.

[Eric M.]

I think what OP is trying to refer to is that the general recommendation is to buy at 70% of ARV for a flip.

That "rule" is very very general. It is theoretically the same for every place but in reality it is not the same for every situation. It is also often not possible. The market in Kentucky is not fundamentally different from anywhere else so the "70% rule" would still apply in general. But in reality the market is nuts right now and lots and lots of deals make no sense when you look at the old "rules". But they can still be profitable. You need to have experience to know when and how you can break the rules and still make money. In today's market you have to break all kinds of "rules", it is not easy. On the other hand, it can seem easy because you can sometimes break all the rules and do things "wrong" and have the market bail you out in the end with a big profit from some crazy buyer who needs a house.

I think OP needs to do a lot more research to understand RE before investing. The reality is almost none of the wholesale deals you will see are legit good deals. Be wary. It is quite difficult to analyze flips right now because you don't really know the ARV accurately and it is hard to estimate rehab cost or time accurately.