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Jul 21, 2019

Where do you fall on the buying scale?

Where do buyers fall on this scale in order to make a profit?
Let's establish what's 100% - full MLS retail price.

100-95% - Owner Occupants
80-90% - Buy and Hold Landlords
50-80% - Flippers
40-70% - Wholesalers

You may ask who buys below 40% of ARV.......simple answer: WINNNERS!!!!

Notice some ranges overlap, this isn't exact science.

Of course if you buy below, you'll just make more, this is to establish a top end.

It's OK for the people at the top end to buy from the people at the lower end, it took a lot of money, resources and time to find that deal.

  • Ex: Wholesaler to landlord
  • Ex: Landlord to Owner Occupant
  • Ex: Wholesaler to Flipper
  • Ex: Wholesaler to Flipper to Landlord

What should you do?

  • You can always sell up the scale, down usually will result in a loss and not ideal.
  • The lower you are on that scale, the more options you have to exit

Decide which of those people you are and plan accordingly.

  • Unless you plan to live in it, don't pay close to 100%
  • Plan on marketing or pursuing for your goals
  • Owner, talk to agents, research the MLS
  • Landlord, meet wholesalers and agents and flippers
  • Flippers, meet wholesalers
  • Wholesalers, you need to meet sellers directly!

If you have any thoughts or questions shoot us an email at You can also find us on Facebook, Instagram, and Twitter @HouseDudes

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Follow Josh Koth and Jack Hoss on their journey towards financial freedom using the power of Real Estate through the REI Rookies Podcast (Real Estate Investing Rookies Podcast). We share our experiences as we acquire rental properties, build net worth, and work towards financial freedom. We are focused on creating wealth through conventional and creative real estate investing while improving our financial education. If you are a fan of Rich Dad Poor Dad by Robert Kiyosaki and Millionaire Real Estate Investor by Gary Keller or are looking for an alternative to the Dave Ramsey, Jim Cramer, Motley Fool or Suze Orman shows we invite you to subscribe today!