Where are flippers able to get deals at 70% ARV in 2022 ?

[Albert Ellis]

Hi, I'm trying to start a discussion on where flippers or rehabbers are able to get deals at 70% ARV consistently in their markets. What strategies are being utilized to attain higher margins ?

[Will Barnard]

What makes you think flippers/rehabbers need 70% deals to stay in business? The 70% guideline is ONLY a back of the napkin calculation and not to be used as a purchase decision. Rehabbers need to know that this guideline number must be adjusted depending on many factors such as area, price point, level of rehab, market conditions, level of experience of flipper, financing, etc.

Here in So Cal, finding a deal at 77% is just about as difficult. Deals are often made and not found and many deals with enough meat on the bone are derived from marketing to potential home sellers before they are with a RE agent or on the MLS (off market). Other flippers tend to just flip more quantity with tighter margins knowing they may have a few losers in there but at the end of the day, they have enough winners to make the profits they need. Every business operation is different in some form or fashion.

So, to answer your question, marketing direct is how you typically find good deals, they do not necessarily need to be 70% to be good.