Maximum Allowable Offer: the 70% Rule and a Refined Version
This lesson is part of the course
In this lesson
You work out the most Bellwether Homes should offer for 418 Juniper Street, first with the 70% rule, then from the deal's actual costs.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- After-Repair Value from Comparables (Adjusted Price per Sq Ft) Locked
- Maximum Allowable Offer: the 70% Rule and a Refined Version Locked
- Rehab Budget: Line Items, Cost by Trade (SUMIFS) and Contingency Locked
- Holding Costs per Month × the Project Timeline Locked
- Financing with a Hard-Money Loan: Points, Fees and Interest-Only Locked
- Selling Costs and Net Profit Locked
- ROI and Annualised Return: Why Time Matters Locked
- Sensitivity: ARV −5%, Rehab +15%, Two Months Late (Chart) Locked