I’m paying 80% of ARV on flips. Thoughts?

[Maher Bateh]

I'm paying 75-80% of ARV on flips.. can you get them for less these days?

[Trent Stone]

Depends on your area. San Fran, not a chance you could get one for less than 80% ARV. Jacksonville, most likely you can. I live in Utah and investors are paying over 80% all in ARV for flips....IMO, it's ludicrous. For that reason, I do all my investing in Indianapolis. We look to be all in at 65% and definitely no more than 70%. The US market as a whole is very hot so most investors are overpaying, but that doesn't mean you have to. Depends on your situation. Me and my partner have been picky and held to our criteria because we can. We have passed on MANY deals that other investors are drooling over, but we make a much higher ROI than they do and our investments are much safer than there's because we have a much higher margin of error. You can go to places like KC or Birmingham and get flips for 55% ARV. Just depends on what's acceptable to you and what your market has to provide. I'm not an expert in the Florida markets so you'd have to do some of your own research, but from what I understand you should definitely be able to get closer to 65-70% all in ARV.