How do you know you're getting a good deal?

[Account Closed]

Hi everyone!

While I have yet to put a property under contract yet because I want to develop my cash buyers list a little further, I'm skeptical to know when evaluating properties how do you know you're getting a good deal? I heard that I should be looking 30% below ARV but I'm curious to see what you all think.

Best,

Claire

[Mark F.]

Hi Claire, it's all about the numbers - they are what tells the tale on whether it's a good deal or not. The investor who buys your property should have a 30% equity position in it (or better) after all repairs, acquisition, and financing costs are taken into account. If you can find deals like that, you'll likely find plenty of investors willing to buy your deals.