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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Comments(4)

  • InActive_Account3rd August, 2005

    Is that just for ugly houss? What formula do you use for pretty houses?

  • Stockpro998th August, 2005

    I mainly placed this as a minimum indicator of what would constitute a good deal.
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  • InActive_Account9th August, 2005

    [quote]
    On 2005-08-04 09:45, Stockpro99 wrote:
    profits are 10-20K with 15K being a good average.
    quote]

    is that before or after taxes?

  • Stockpro9911th August, 2005

    Yes,

    ARV 100K repairs 15K

    100X.80=$80,000-$15,000= $65,000

    65K purchase price is a good deal
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