I think their formula is based on the size of the property and amount of bedrooms, but doesn't take into account the quality of the unit or even the area it's located in from what I can tell. 

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Remember the formula (ARV x .65 - Rehab Cost - Assignment Fee= MOA) Also, I recommend that you read the following books and listen to podcasts.1) Think and Grow Rich - Napolean Hill2) Investing in Real Estate with No and Low Money Down - Brandon Turner (Bigger Pockets)3) Also listen to all of the BiggerPockets podcasts.

It is one thing to get a good deal, but taking advantage of people isn't a good formula for success.

James- using this formula, shouldn't it be 25k in equity, 75k in debt?

I'm reading an article, Top 21 Real Estate Investing Terms and Returns with Formulas, on some basic terminology.

What is the formula?

Account Closed,You can draw up a simple payment schedule with a few formulas in Excel, and play with the variables. 

Taylor, you can't just contribute $50K on $100K gains, there is a formula you need to use the calculate the amount you are eligible to contribute.

They want homes in the area to be in the $400k to $1.5 million range. 2) You negotiate the lot price and it must meet this formula - Determine the average market price of a home built on that lot and take 15% of that value.