Using the 70% Rule for Investing? Here’s Why You Shouldn’t | Video
In today’s video, Laura discusses the 70% rule and how it’s WRONG!?
Are you using the 70% rule for investing? 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 hear this expert run numbers & help you maximize your profit!
Listen to The Real Estate Pod
All content is available on YouTube and released as The Real Estate Pod, available on Apple, Stitcher, Spotify, and most places you listen to podcasts!
RentRedi Partners
Easy, Affordable Insurance Solutions for Rental Property Owners
Steadily provides fast and convenient online quote estimates in minutes and connects with licensed landlord insurance experts. Get competitive rate options for many types of rental properties, which helps landlords access affordable coverage in 50 markets nationwide. Learn more.
Market Analysis Has Never Been Easier & More Affordable
BrightInvestor helps you find the best real estate markets, get MLS access, source off-market deals all in one place. Learn more.
Struggling To Find Good Landlord Insurance?
Honeycomb provides better coverage and clarity at a fraction of the cost. Get Property & Casualty insurance for landlords, PMs, & owners. Insurance reinvented! Learn more.
Protect Your Property—Without Increasing Operating Expenses
TheGuarantors provides two types of coverage in one simple solution: rent and deposit coverage which protects you from rent defaults, vacancies, lease breaks, damages, and more. Eliminate the need for co-signers and guarantors. TheGuarantors platform is free for landlords and affordable for renters! Learn more.
Easy, Affordable Insurance Solutions for Rental Property Owners
Steadily provides fast and convenient online quote estimates in minutes and connects with licensed landlord insurance experts. Get competitive rate options for many types of rental properties, which helps landlords access affordable coverage in 50 markets nationwide. Learn more.
Market Analysis Has Never Been Easier & More Affordable
BrightInvestor helps you find the best real estate markets, get MLS access, source off-market deals all in one place. Learn more.
Struggling To Find Good Landlord Insurance?
Honeycomb provides better coverage and clarity at a fraction of the cost. Get Property & Casualty insurance for landlords, PMs, & owners. Insurance reinvented! Learn more.
Protect Your Property—Without Increasing Operating Expenses
TheGuarantors provides two types of coverage in one simple solution: rent and deposit coverage which protects you from rent defaults, vacancies, lease breaks, damages, and more. Eliminate the need for co-signers and guarantors. TheGuarantors platform is free for landlords and affordable for renters! Learn more.
Easy, Affordable Insurance Solutions for Rental Property Owners
Steadily provides fast and convenient online quote estimates in minutes and connects with licensed landlord insurance experts. Learn more.
Market Analysis Has Never Been Easier & More Affordable
BrightInvestor helps you find the best real estate markets, get MLS access, source off-market deals all in one place. Learn more.
Struggling To Find Good Landlord Insurance?
Honeycomb provides better coverage and clarity at a fraction of the cost. Get Property & Casualty insurance for landlords. Learn more.
Protect Your Property—Without Increasing Operating Expenses
TheGuarantors provides rent and deposit coverage in one simple solution that protects you from rent defaults, lease breaks, and more. Learn more.