What is the retail buyer exit?

The deal this saves

A seller wants $100,000. The 70% rule says an investor can pay $80,000. Everyone walks away. But a retail buyer using a mortgage will pay close to full market value for that house once it is repaired — which often means $95,000 to the seller still clears a real profit. The deal was never bad; the exit was wrong. That gap is what this tool measures.

Every formula it uses

• Average comp value = the mean of the sold comparable prices
• Repair estimate = square footage x cost per square foot (Pretty, Yucky or Scary condition)
• Target list price = average comp value x RBP list percentage (90% by default)
• Total expenses = realtor commissions + repairs + concession credit + closing costs
• Projected net profit = sold price - purchase price - total expenses
• Maximum allowable offer = sold price - total expenses - your profit goal
• Negotiate off asking = asking price - maximum allowable offer
• Wholesale value = ARV x wholesale percentage (70% by default)
• Wholesale net profit = (wholesale value - wholesale repairs) - purchase price

A worked example

A 1,500 sqft house, comps at $250,000, dated condition at $20 per square foot ($30,000 of repairs), $4,000 of closing costs, and a $20,000 profit goal. Target list price is $225,000 (90% of comps). Maximum allowable offer is $225,000 - $30,000 - $4,000 - $20,000 = $171,000. If the seller is asking $210,000, you need to negotiate $39,000 off — that is a red light. At $160,000 asking, the same house is a green light with room to spare.

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