Making your offer count

[Brian N.]

Hi guys. I’m browsing around properties in my area looking to make my first deal. I’m using the bigger pockets calculator and trying to figure out if it’s a good deal with the numbers and trying to hit that 12 percent ROI with some positive cash flow. Do we just assume that the offer price is a starting point and we’re going to need to offer much lower than that? Because Rarely with the houses I’m finding under 200 and with the rent am I getting the numbers right at list price. Do we just send in low offers and hope something hits?

[Joe Villeneuve]

You're looking at this backwards.  You don't make offers based on what it would take to get the property.  You make offers based on what it takes to get the deal.  Huge difference.  The offer you make is based on your numbers...regardless of what the asking price is.