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Updated over 5 years ago on . Most recent reply
What does "cents on the dollar" mean?
I'm hoping this isnt a stupid question but what does a wholesaler mean when they say you need to buy "so and so" cents on the dollar? How do I estimate that? How do I figure out my equity range and or potential profit from a sale price and ARV? Is there a simple math equation I can follow
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Greg Dickerson
#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
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- Charlottesville, VA
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Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
Cents on the dollar or pennies on the dollar is simply a discount.
You want to buy at minimum 65-70% ARV minis the repair costs. This will leave you a 20-25% profit after other expenses.