Can in make a low offer on a foreclosure?

[Mitch Turgeon]

I am a new investor looking at a foreclosure as a live and flip. The ARV is $400k, the rehab costs should be between $130l-$150k, the property is bank owned and asking price is $260 with a $20k assessment. My thought is to offer $170k cash and finance the rehab. Am I wasting my time offer $90k under asking? Any suggestions on how to proceed?

[Mike Warder]

Submit the offer. You're running a business, not a popularity contest. I'm putting an REO offer in tomorrow far below asking price. $160k ARV, Asking $137. With $50k in repairs necessary, I'm offering 80k. If they say no, I move on and look for another opportunity. I want it to work because of the time I've spent getting bids, etc, but it's not worth it if it puts me in the red.