09/21/2026
This is the part new investors misread. The gap between 70 percent and full ARV is not 30 percent of profit. That buffer has to absorb four separate costs first: roughly 8 percent for selling, 5 to 6 percent for financing, about 5 percent for holding, and only then is what remains your profit, usually 8 to 12 percent. The rule is really a short way of saying price the time and the leverage first, then see what is left.