How do you make an offer (wholesale) on a property when you don't know the repair costs?

[Jordan Archer]

Hey BP,

I just sent out a marketing campaign, and my phone is already ringing.

Naturally, I want to make offers on these leeds. How do I make these offers without knowing what will be required for repairs? I'll be able to run comps, but unless I see the house I will not know the Repair Cost.

Should I just make a generic 60% of ARV offer, and if they accept, go check out the property and determine what work needs done?

Or should I be more broad and say something like, "Are you ok with me buying your house at 50% or less of market value?" ... if yes, go see what really needs to be done?

Thanks,

Jordan

[Bill Gulley]

Jordan, I'm seeing 86 posts, 13 votes, so you're not just walking in the door to BP.

It's early, but if you don't know what repairs are to be made, what updates may be made, how can you possibly know the ARV?

You're mailing letters? You don't make any offer in a letter. All a mail campaign is for is to find interest in selling, then you follow up.

Either you, or someone else needs to see the property, estimate repairs before you make a true offer.

I'll offer you $5,000,000.00 for your home, subject to my final inspection and revaluation process. Is that a legitimate offer? :)