Wholesaling To Flipper: How To Make An Offer
Hi BP,
I am scrambling right now to make the right offer in the right way by tomorrow noon. I am in the nor cal market and the house has ARV 360 so I figure my max offer allowable is 360-(55k repairs)-(my 10k wholesale fee)-(60k for holding costs and flipper profit) = MOA of 235k
I figure my intitial offer should be around 215k.
What do you guys think? Even if you dont know the market some advice would be better than none and guesstimates are better than nothing. Is this too low for a seller to accept or too high for a flipper to think it is a good deal?
My negotiation strategy is give them my 215k lowball offer and then if they object ask how close they can come to that number? Then to whatever they say I will reply with "is that the best you can do?". then to whatever they say I reply "So if I pay you all cash and can close quickly how much lower can you go?"
Then I figure if they arent anywhere near 235 by that point I say "I want to put this money in your pocket but it has to work for both of us. How much lower can you go? I'll have to get on the phone with my partner because we set a certain number I could not go higher than."
If you can help with any aspect of this problem please feel free.