What Is 70 Percent Rule?
Also known as: 70% Rule
The 70 percent rule is a quick investor formula that estimates a maximum offer as 70% of ARV minus repairs and the wholesaler fee.
The 70 percent rule is a quick investor formula that estimates a maximum offer as 70% of ARV minus repairs and the wholesaler fee.
70 Percent Rule explained
The 70 percent rule is a screening tool, not a universal law. It helps wholesalers avoid overpaying by leaving room for the end buyer profit, closing costs, holding costs, and risk. Different markets may support higher or lower percentages depending on competition, repair uncertainty, and buyer appetite. The formula is most useful early in analysis; final offers should still reflect real comps, repairs, and what active buyers are willing to pay.
Example
If ARV is $300,000 and repairs are $50,000, 70% of ARV is $210,000. After repairs and a $10,000 fee, the rough MAO is $150,000.
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