Traditional Wholesaling and the 70% Formula #paynelessflipping #virtualwholesaling

Name: Traditional Wholesaling and the 70% Formula #paynelessflipping #virtualwholesaling
Uploaded: 2024-12-04T23:00:16+00:00
Duration: 35 s
Channel: Nathan Payne
Description: In this brief segment, the presenter explains the core principle of traditional real‑estate wholesaling: using comparable sales (comps) to estimate an…

4 Dec 2024 · 1 min

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In this brief segment, the presenter explains the core principle of traditional real‑estate wholesaling: using comparable sales (comps) to estimate an after‑repair value (ARV) and then applying the "70% formula" to determine a viable purchase price. The formula is described as a universal rule—70% of the ARV minus estimated repair costs and the wholesaler’s fee—that identifies a dealable price for any property in any U.S. market, regardless of the end buyer. The speaker emphasizes that this calculation is the “magic formula” that guides wholesalers in pricing offers.

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Now, traditional wholesaling says to take the comps at $600,000 and then use the 70% formula. And the 70% formula is the magic formula that can tell you exactly at what price something is a deal for any property in any market across the entire US, no matter who the buyer is. This is the logic of traditional wholesaling. All right, and the 70% formula is 70% times ARV And then you minus the repairs and you minus your wholesale fee.