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🔨 Fix & Flip — 70% Rule

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① TL;DR

② When to use

  • BBC deal_type = fixAndFlip (BBC's algo flagged it as distressed)
  • Price under $250K (Richard's repeated cheap-flip examples: $99K Detroit, $114K)
  • DOM 60+ days
  • Property condition needs work (cosmetic to medium rehab — not gut)
  • QUALIFICATION GATE: asking ≤ 70% of ARV (BBC's algorithm pre-filters)
  • Target markets (Cash Course primary-source, line 134-140): 'Akron OH, Cleveland OH, Dayton OH, Columbus OH. Montgomery AL, Birmingham AL. Memphis TN. Indianapolis IN.' Plus Detroit MI (Richard's currently flipping there, line 414) and Flint MI. Florida secondary. Mississippi (Jackson) and North Carolina (Clayton) covered by general 'Midwest and South' guidance.

📺 Course Video

Cash Course — Section 8 + Fix & Flip
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Cash Course — Section 8 + Fix & Flip
Beginner · ~50min · Watch on YouTube ↗

Two cash strategies in one course: Section 8 turnkey rentals and distressed Fix & Flip wholesale. For F&F, Richard's shortcut bypasses the ARV-comps-rehab arithmetic and goes straight to "offer 70% of list price" — his repeated line: "70% of list price, it just works. There's not much of a comping process here." Best fit: cheap distressed cities in the Midwest and South — he names Akron / Cleveland / Dayton / Columbus OH, Montgomery / Birmingham AL, Memphis TN, Indianapolis IN, plus Detroit MI where he's currently flipping. Photo-check the listing first (refresh-level rehab works, gut-level damage does not), then submit cash at MAO with 10-day inspection.

Key timestamps
  • ~2:00 — Section 8 vs Fix & Flip — both cash strategies
  • ~4:30 — Target city list (Akron/Cleveland/Dayton/Columbus, Memphis, Indy)
  • ~12:00 — $114K cheap-flip example walkthrough
  • ~13:30 — 70% of list — the rule itself
  • ~14:00 — "It just works" + when to skip the comping process
  • ~21:00 — Detroit flipping (Richard's own active deal)

③ How to run this play (step-by-step)

  1. Confirm Fix & Flip fits — pull the photos
    Tap the Zillow link on the briefing card → review photos. Fix & Flip works on properties that need refresh-level work (paint, flooring, kitchen/bath refresh). If photos show gut-level damage (water, fire, structural), back off — that's an investor-only play not a wholesale flip.
  2. Run the numbers in Fix & Flip Calculator
    BBC's Fix & Flip calculator on the listing computes your wholesale spread from ARV − rehab − 30% margin. Richard's Cash Course shortcut: offer = list price × 0.70. If your cash offer is under that 70% number, you have spread to wholesale.
    HMHW Fix & Flip Calculator ↗
  3. Run the call — Cash Course C1 pitch
    Cash offer pitch is shorter than SF/MT: 'Hey [agent], calling about [address]. I noticed it's been listed [DOM] days. I'm a cash buyer for SFH in that area — happy to close fast at $X cash, no contingencies on financing. Inspection period 10 business days, EMD after inspection. Can you present that to your seller?'
  4. On verbal yes → cash contract
    Standard cash purchase contract (not the creative addendum). Closing attorney handles. Then dispose via Grand In Taylor cash buyer list or BBC Marketplace.
    Grand In Taylor Cash Form ↗
  5. Comps check before submitting
    Tap Sold comps ↗ on the card to verify ARV. Look at recent sales of same bed count in the ZIP. If sold comps support an ARV above your buy-fix-sell math, the deal works.

⑨ Sources (go deeper)

📜 PRIMARY SOURCE — Cash Course transcript L134 (target city list) ↗ 📜 PRIMARY SOURCE — Cash Course transcript L414 (Detroit flipping) ↗ 📜 PRIMARY SOURCE — Cash Course transcript L427 (70% rule) ↗ 📚 HMHW Cash Course (Fix & Flip portion) ↗ 🧮 Fix & Flip Calculator ↗ 📋 Grand In Taylor — Cash Form ↗ 🏦 Find more F&F deals in BBC ↗