Okay so i need guidance. First off this is my first deal that I am working on getting. Very exciting time but also very nerve racking. So here is the low down on this deal thus far. First off i found this property cold calling craigslist properties. Its a for sale by owner. The lady is very motivated because she is moving to TX soon and just needs to unload this property. The property is here in Lincoln NE. The ARV according to her is $250,000. Zillow estimates it at $232,608. Its a 5 bed, 3.5 bath, 2000 sqft., 2 story house. Shes owned the property for 12 yrs and has just over 50% equity in the property. I plan to call her tomorrow and set up an appointment to see the property. Here is were Im running into a problem. Im getting comps, and my contract and everything ready for the appointment but I cant figure out what my top offer is. I started off learning about wholesaling by finding a podcast by a very successful wholesaler in AZ. During my months of educating myself through these podcast I learned a formula (The 70% rule) for figuring out this offer. The formula is 70% of the ARV minus rehab cost minus my desired profit. I used these calculation to decide i should offer no more then $132,825. Then to compare i used the wholesale calculator on BP and figures show i should offer no more then $163,000. Obviously there is a difference of opinion of roughly $30,000. This is my first deal and i want to minimize my mistakes as much as possible. Is there anyone who can offer advice or perhaps a professional with more experience in my area who would be willing to help council me. i would very much appreciate it and be more then willing to do something to help return the favor. Thank you BP community.
if you feel ok messaging me the address I'll look it up on Redfin.
You can make an account and at the top right click price home. Pick homes that are within .5 miles and the exact bed bath and same or less sq ft as the house. It will calculate the arv. Then plug it in to the wholesaling calculator at biggerpockets.com/calc I would say go for 5k fee. It will tell you the max offer. Then youll need to subtract repairs. That you'll have to take pics and post them here.
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