70% rule

Performance Property Real Estate Question

Why The 70% Rule Is So Important For Real Estate Wholesalers

Q: I’m a new wholesaler looking for my first deal. Can you give me some tips to help me? Terrence, New Brunswick, NJ A: One of the most important concepts to internalize if you want to be a successful wholesaler is that you have to leave enough profit in a real estate deal to make the deal attractive enough for an end-buyer/investor to want to buy the property.  The 70% rule is an essential part of the wholesaler’s formula, which first requires you to arrive at an accurate market value or after repair value (ARV) for the property in question. NOTE: I go into more detail about the wholesaler’s formula on page 73 and 74 of my book, “Real Estate […]

continue reading