Are you ready for the secret sauce? The formula everybody always asks us about because they can’t figure out why our offers are consistently higher than our competitors?

After Repair Value (ARV) – this is where it all comes from. With almost everything we do as a company we start with the end in mind. Very similar to when we talk with you about your needs, we find out where you WANT to be, your end goal.

Follow with me for this quick logic trail. We are going to purchase your home for cash, close super quickly and then pour into there with our team of professionals to fix the house up so when we do list it, it sells really quickly (in a perfect world). People like nice, new updated homes – shiny stainless steel and never walked on carpets.

So with the end in mind we now have a really good idea of what this home is going to look like. We then contact our realtor and have him pull comparable sales through the multiple listing service (MLS) and say:

“Hey Billy, we have a 4 bedroom, 3 bathroom, 2800 sq foot home on 1/4 of an acre that will have a new kitchen, new bathrooms, all new paint and flooring, stainless steel appliances, and modern light fixtures as well as some landscaping upgrades and a new garage door with a freshly painted house.”

Billy does his magic and gives me the most accurate listings for homes that recently sold very close by (typically within .5 miles) that match ours as closely as possible.

Now we have a selling price (After Repair Value)!

From there it’s a really simple equation of backing out numbers to determine out fair cash offer. After years of flipping homes, knowing what to expect and how to make sure we all come out ahead this is the formula we have found works for us – allowing us to give you the highest possible cash offer.

ARV (The Home’s Fixed Up Value) – Rehab Budget -Selling Costs – Profit = Our Cash Offer

Let’s define all of these items! Then we’ll give you an example of how this all works and just to show you we truly run by this formula we will break down an actual house we just flipped in a real Case Study!


After years of experience flipping homes, we have developed a formula that allows us to make fair cash offers to homeowners. We start by determining the After Repair Value (ARV) of the home, which is the estimated value after all necessary repairs and updates are made. From there, we subtract the estimated cost of the renovations, selling costs (including commissions and closing fees), and our desired profit margin (which we have found to be around 10% of the ARV).

While our profit may seem high to some, it is necessary to keep our business running and allow us to continue helping homeowners. We have found that unexpected issues often arise during renovations, making it important to have a buffer for potential costs.

To give you a better understanding of how our formula works, let’s break it down further. The ARV represents the home’s expected value after we make all necessary repairs and updates. The rehab budget is the estimated cost of these renovations. Selling costs include commissions, closing fees, and taxes, which we estimate to be around 10% of the home’s value. Our desired profit margin is around 10% of the ARV as well.

We believe that transparency is key, which is why we offer our cash offer with no hidden fees or commissions. Our goal is to provide a fair and honest solution for homeowners looking to sell their property quickly and efficiently.

You may be wondering why we aim for a 10% profit margin. The reason is that, as we’ve learned through our years of experience, unexpected issues can arise during the renovation process, making it essential to have a buffer for potential costs. While we have a set number we aim to make for profit on each job, we know that not every project will go perfectly. In fact, we’ve had a few curveballs thrown our way, but our experience has prepared us to handle these challenges.

Our cash offer is exactly what it says it is – the amount we can offer you for your home on the closing date of your choice. We believe in transparency, which is why we don’t have any hidden fees or commissions. Our goal is to provide a straightforward, hassle-free solution for homeowners who are looking to sell their property quickly and easily.