Here Is The Success Formula
I always get asked "what makes a good deal?"
I frequently have a hard time explaining it to realtors and other would be investors.
Bill Bronchick was very eloquent two weeks ago when I spoke to him and this is what he said.
80% of ARV (-) repairs = a good deal!
This is true in our area, I think it may work elsewhere as well.
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Is that just for ugly houss? What formula do you use for pretty houses?
I mainly placed this as a minimum indicator of what would constitute a good deal.
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On 2005-08-04 09:45, Stockpro99 wrote:
profits are 10-20K with 15K being a good average.
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is that before or after taxes?
Yes,
ARV 100K repairs 15K
100X.80=$80,000-$15,000= $65,000
65K purchase price is a good deal
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