Wholesaling and the 70% Rule

[Scott Nolan]

There are so many posts on BP about not using the 70% Rule, but it seems that the advice is directed towards rehabbers, not wholesalers. Do wholesalers stick to the 70% Rule? How religiously?

[Micah Copeland]

@Scott Nolan

Hey Scott. As long as its anywhere in the 100k to 250k range you can use the 70% rule if you are marketing to flippers as your end buyers. After you get the 70% number make sure you take off the repair estimate and how much you want to make on that property and then submit that offer. Do not budge on the price if you know it is correct, since their is no point in getting a property under contract that you can't move. Also, if you are marketing to buy and hold investors you can use Gross rent multiplier to determine your asking price. I just made a post about this under how to evaluate a multi family property at https://www.biggerpockets.com/forums/311/topics/231025-how-to-run-comps-on-a-3-unit-multifamily?page=1#p1527257