Buy Formula in WA State

[Simon Y Kim]

Hey BP community,

I am getting outbid on on-market properties in the Pierce County, WA area, particularly in Tacoma and Spanaway. 

Is it too much to ask what buy formula buyers are using to put in their offers? I currently am taking 70% of ARV minus the estimated rehab cost to get my MAO and it tends to be way lower than other buyers/investors making bids.

How are other investors coming up with their offers?

What factors do you include in determining your buy formula? 

Thanks!

[Michael Haas]

Waive your inspection, and if you don’t feel comfortable waiving your inspection spend more time with rehabs until you do. 

On market deals are hard enough as it is, and if you come in with full contingencies you can write offers at 70% ARV until your hand falls off and not one of them will be accepted.

You should play to your strengths in every offer- sounds like your partnering with an experienced investor- is he/she the money partner and mentor, or something else? If they’re the money partner, does that allow you to offer cash or waive the financing contingency (aka “as good as cash”). What are the skills and work that you’re bringing to the table?