"Flipping" formula ?? - Posted by J.C.

Posted by Jim FL on February 04, 2002 at 22:31:21:

I think the formula you are referring to is perhaps the one Legrand and others espouse.
It goes something like this;
70% x FMV - Repairs - your profit = Max offer.

Although this is a good formula for safely getting a good deal, you may also want to contact some local cash investors and see what their buying criteria is.
Some will want a certain number for their profit, others will only buy at a certain value ratio.
Each has what they are looking for, and when you find that out, it becomes MUCH easier to complete deals.
I once flipped houses pretty regular to a guy who wanted houses with cosmetic only repairs, things like paint and carpet, but would pay up to 85% of value.
He bought these with his credit line, rented them out section 8, and then refied them to free up his credit line. He was an easy customer.

Good luck with your deal,
Jim FL

“Flipping” formula ?? - Posted by J.C.

Posted by J.C. on February 04, 2002 at 21:21:06:

Hi everybody,

I know this question has been asked time and time again. But, I’m working on a deal right now that I will be flipping very soon.

What is that formula again? It’s 70% of something??

Thank you,


Re: “Flipping” formula ?? - Posted by Steve-DC

Posted by Steve-DC on February 05, 2002 at 07:34:26:


Here’s an article in the How-To section that explains the formula.


Note however, that whatever advice you get from anyone needs to be tailored to your market. There is no one formula for the entire country.


Re: “Flipping” formula ?? - Posted by Zack W

Posted by Zack W on February 04, 2002 at 23:02:20:


When I tie up a property to “flip” or “wholesale” to an investor I run all of my numbers as I would if I were going to rehab it. Then from my maximum purchase price figure I subtract $6,000 [my profit]. I make my offer with that number and if it gets accepted, then my investor will make at least 10k on the back end.

Zack W