Can someone help me understand how to find the 70% rule?

[Ben Valentin]

Here's my problem:

I've been working with Realtors, Wholesalers, and just looking at my own deals online. 

I've been looking over a lot of deals, and their numbers show their ARV estimates, Rehab estimates, etc.

Not one single deal has shown anywhere near the 70% rule of expenses, and that's only considering purchase price and rehab estimates. These numbers haven't taken into account the wholesale or realtor fees, holding costs, closing costs, etc. 

Every single deal has been between 75% and upwards of 90% of ARV.

Could someone please let me know if I'm missing something? Are these list prices from wholesalers including their fees? Maybe I'm getting concerned before looking long enough, or maybe I'm confusing my numbers. I refuse to let my first deal be a loss due to settling for something above the 70% rule. I just need some help understanding how it all gets pieced together in a legitimate deal. 

Thanks, guys!

[Kenneth Garrett]

@Ben Valentin

The market has improved so finding deals are a little more challenging especially if you are using the MLS. There is a lot of competition. That doesn't mean you can't find deals on the MLS. Some markets, the 70% rule doesn't work and they are using a 75-80% rule. Make sure your rehab numbers are not to conservative. Analyze properties you are interested in. Watch them and see what they sell for and what rehab was done to them and what they sold for. Study your market. I spent the first year tracking the industry before I bought my first one. Just like you I didn't want to make a mistake. Find a mentor to help you. Attend REIA meetings and see what people in your market are doing. I'm sure you will do great in your investing career. It does take time otherwise everyone would do it.

Good Luck.