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Updated over 16 years ago on . Most recent reply

User Stats

77
Posts
1
Votes
Chris Coughlan
  • Real Estate Investor
  • Massachusetts
1
Votes |
77
Posts

How to determine price for investors?

Chris Coughlan
  • Real Estate Investor
  • Massachusetts
Posted

I have read that when you make an offer to a seller it should be between 40% and 60% of the ARV

As a general rule, what percentage will an investor pay of the ARV? 70%? More? Less?

Let's say there is a house with a 200K ARV and 20K in repair costs.

How do you figure 70% of that?

200K x 70%= 140K
140K - 20K = 120K

or do you do it this way?

200K - 20K = 180K
180K x 70% = 126K

So would I offer the property at 120K or 126K?

Thanks,

Chris

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