70% VS 65%

[Nicholas Renshaw]

Hey BP! Nick here with another question, this time regarding profit for the wholesaler. I have heard from many investors about using the formula ARV X .70 - rehab cost - desired profit = MAO. But just a few moments ago I heard of someone else using separate formulas together for the buyer purchase price and the wholesaler purchase. Those went as follows: Buyer formula: ARV X .70 - rehab cost = buyers purchase price Wholesaler formula: ARV X .65 - rehab cost = MAO Now where the profit comes from is the difference between the buyers purchase price and the MAO. My question is which one is better to use? The first formula using only the .70 or the second set of formulas using both .70 and .65? Or is it all just preference? Thanks, Nick