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Using the 70% Rule for Investing? Here's Why You Shouldn't
Manage episode 323106522 series 2837972
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In today's video, Laura discusses the 70% rule and how it's WRONG!?
Are you using the 70? Why or why not?
According to Laura, the rule you should use is making at least $10,000 profit on a deal. At the end of the day, when you're wholesaling, you want to sell the property and make at least $10,000 in profit. So the percentage will be different for every deal.
For fix and flip, you want to make a 10-15% profit of the repair value. To find this number, subtract all the costs for repair and flipping, and then you have the offer value.
For buy and hold, Laura's goal is to get $200-100 per door—depending on the type of rental. Monthly rental income will be subtracting the expenses - profit = how to calculate the most she will pay!
Tune in to this expert run numbers & help you maximize your profit!
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