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Updated over 5 years ago on .

User Stats

3
Posts
1
Votes
Reginald Mitchem
  • Greensboro, NC
1
Votes |
3
Posts

ROI formula wholesaling

Reginald Mitchem
  • Greensboro, NC
Posted

Greetings everyone,

This is my first post on BiggerPockets. I like to do a lot of research and number work.I can't calculate one variable, even though I know there are different formulas out there to come up with the max allowable offer (MAO).I am familiar with the ARV*.7 rule in wholesaling,but I feel there is a better formula than this to help benefit my buyers more.I wanted to know how to calculate the ROI percentage.Is there also a formula that uses an ROI percentage to reach a MAO? I would feel more comfortable on my deals knowing the percentage on the ROI,I just do not know how to compute it myself sadly.I am more of a visual learner, if you can explain with an example,I would greatly appreciate it.