Offlinehi im a noob and i recently bought armondo montelongos real estate investing book.. but i dont understand the 70 percent rule can some one please explain it... and do you take out over head and holding costs from the loan plz help.
Explain Plzz
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When he mentioned the 70% rule, what was the subject? Was he talking about financing, or valuating a property, or something else?
Jill
"When we are grateful, fear disappears and abundance appears." ~ Anthony Robbins
"Do not wait; the time will never be "just right." Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along." ~ Napoleon Hill
Jill
applies to how you buy your properties. That means that you are buying at 70% of the After Repaired Value (ARV) minus repairs. This means that after you rehab the property you should have 30% equity in the property allowing you to resell the property for a cash profit. Many investors live and die by this rule, however, it doesn't always work. For example, I am in CA and we have a hot market so investors are tweaking their numbers higher. Many are purchasing at 75% of the ARV. Some are even pushing it at 80%. It really depends on the price of the property.
As far as approaches... mspillman is incorrect in saying that you won't get a response to your question. Yes, this is a DG site, however, there is a tremendous amount of experience on this site and you will always find people who have taken DG's methods and expanded on them. As long as you are not promoting another Guru your fine to ask any question you would like.
thanks guys thanks for the help
If I had forgotten, I realize today why I don't go on this site too much anymore. While I think Dean's blogs and links are all great and highly educational, the forum on this site is not helpful at all for the most part and is really hurting the reputation of a good site. Every once in a while someone will post things on here that are useful. I find it really disheartening when people think they are better than others and throw around idle threats as if they are superior. This site has helped me out, but this forum has gotten so ridiculous. I hope it changes and just simply goes back to being a way to help people out and not a way to attack each other.
It's not what we get, but who we become and what we contribute that gives true meaning to our lives.
wholesalers find/buy properties for 50% to 65% below market value; then in turn sell it to investors for 70%. Everyone wins
Wishing you great success!
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I was confused when I saw your post because this is a site for people who read Dean Graziosi's books and use his methods to do real estate business. And when we have quesitons we ask & others help us. So when you don't even know who DG is and get on this site. I believe not I was confused but if you put yourself in my shoes. Won't you feel strange, too? no bad feeling. Nobody tries to hurt you, it's just strange. It's just human's natural reaction. Don't take it hard. God Bless You.
What makes this blog great is something outside money. That's something deeper in human nature. It's spiritual. We need money but we need spiritual nurishment, support, encourange, understanding, sharing,love, forgiveness... even more.
What makes DG a great guy is not only he is excellent is real estate but he is willing to share & also to help to guide us. That's why he set up a site to help his readers and let them help one another. There's something spiritual he has to make him a great guy. I believe if you follow the rules of this site. DG welcome you here.
You know you're like going to a different country, you like the people and many things but they have different backtround, think different, talk different... there is "culture shock". When I first came to this country to work. But my coworkers didn't like me because my ways are differnet. Are they bad people? not at all. Am I bad, NO. It is culture shock. It takes time and tolerance & understanding... Believe me people here are just normal human beings. So am I and so are you. Let's all calm down, shake hands and try to understand and respect one aonther. We all make mistakes. We all have good and bad emotion and problems. That's why we need one another to help us conquer our problems. Isn't that why DG set up this site?
Thank you so much for the clarification!
Jill
"When we are grateful, fear disappears and abundance appears." ~ Anthony Robbins
"Do not wait; the time will never be "just right." Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along." ~ Napoleon Hill
Jill
Thank you too for the information!
"When we are grateful, fear disappears and abundance appears." ~ Anthony Robbins
"Do not wait; the time will never be "just right." Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along." ~ Napoleon Hill
Jill
I also bought armondo's book and his master course for $1,000 dollars.I learned ten times more from deans books at a fraction of the cost.armondo is a very motivational speaker and writer and says its very easy to get the money to flip houses.I applied and tryed his techniques with no results and settled on my own strategy of lease options.I'll start flipping when my credit score is 640 and i can qualify for HML.I found that HML's are only going to lend 65%max ARV,some will roll in closing,repairs ETC as long as all of that is 65% to the ARV.If I was you I would stick with dean's course,theres alot more here than anyone else will have to offer and of course for thousands less.
ANY FOOL CAN CRITICIZE,CONDEMN AND COMPLAIN AND MOST FOOLS DO.
BENJAMIN FRANKLIN