How Do You Structure Your Offers ???

[Chris Gawlik]

I have been sending out some absentee owner letters to the city of Riverside CA. I just sent out my first 250 and received around 10 calls, a very nice response. No luck yet with a deal but with this kind of response it will only be a matter of time before I make an offer to a seller.

• Has any one ever lost a deal by writing to low of an offer? Offended someone with such a low offer that they don't take you serious and walk away.
• What are some strategies that you use when making an offer?
• How would you structure a cash offer and an owner financing offer? If you could break down some numbers on say a 200 k ARV with 25 k in rehab that would be great.
• How much of a ROI are you trying to make on this 200 k ARV with 25 k rehab deal?
• How much of a ROI would you try to make on a 700 k ARV with 75 k rehab deal ?

On a 200 k ARV property it seems that I hear a lot of investors talking about making a minimum of 20 k profit, but 20 k profit on the 700 k ARV deal seems very slim. What would you want to make as an investor on this 700 k deal.

Thanks in advance for any insight you can give to any of these questions. Good luck with your investments.