Matt and Deans 25:1 video a numbers question

Matt and Deans 25:1 video a numbers question

Hi all.
I have a numbers question on the 25 to 1 plan presented on video by Dean and Matt about a month ago. That plan is simple. You go for about 70% of comps or just below foreclosures.
In following my training in the 3 day class as well as boots on the ground and the 30 day to cash book my max offer would be something like this. (Assume this house is from a RE agent using the MLS)
$100K house based on comps (sales)
.85 multiplier to offset tax, closing and RE agent
Now we are at $85K
Minus $20K cash buyer profit. (They all seem to have $20K in their head)
Minus $3k my profit.
Max offer is $62K if no rehab is needed. (That is 62% of comps)
If you had $5k in rehab that would be $57K or 57% of comps
In Matts 25 to 1 plan you take comps times 70% and it does not consider rehab.
Thus the question is what am I missing here. If I were to make offers at the 70% range there will be only $15K profit for me to spilt with the cash buyer. (The 70% to 85% margin)
Matts 25 to 1 does not seem to have much of a retail discount to sell the home fast. Such as 10% below market or comps x .9
Or is the 25 to 1 plan only if I am going to retail the house and keep the 15K.
For now I see a deal with no rehab as $100K X .9 x .85 – 20K – 3 K = $53.5 K
All comments appreciated.
RG

__________________


This is a good question...

Seeing as how I'm looking to tackle the same 25 to 1 strategy, I think this is a great question that I'm probably going to have pretty soon. Sorry I can't be of more help to you, the poster, but the way I understand it, you make perfect sense. It's a little confusing to me at this point.

__________________

New REI in SWFL!