Hey all, I am still a fresh baby in the wholesaling so I could use some help here: Seller owes about 20k on the mortgage, home is estimated at 102k, Seller is asking 112k. How do I go about that as making an offer exactly, Comps in area around $85K & another for $90k. (others $100k range) My gut offer was $80-90k....

Do I deduct $$$ due to mortage owed? How does that work exactly?
Also Seller says theyd like a bank certifying to them that i HAVE the money for the house because theyve "been stung a few times" and even though I look trustworthy to them it would only make them comfortable....I said it would not be a problem to show them certification. But, would this come from the buyer or?...

Im looking to flip, so how do I go about a clearer ARV if there isnt much needed for repair, Roof is 2 years old, house was built in 85', bought in 05'. Advice much appreciated thanks

Like I said, I am still fresh to this so thanks in advance.

The certification comes from your bank , your account . Sounds like the sellers are educated .  I think you need some more reading before you try playing the game 

If you are trying to wholesale and you were offering $90,000 on a property worth 102, you won't get very far. To wholesale that you would need to buy it for about 50

@Jessy Stanley This won't work as a wholesale because you're talking about a buy price that's way too close to market value. No investor would buy this from you when they could just as easily get something similar (and probably cheaper) by looking on the MLS. Offer to pay off their morgtage, pay closing costs, and give them $xxxx.xx in cash. I agree with @John P., offer the seller no more than 50K total. If the owner says no then he's not as motivated as you need him to be to do this as a wholesale. However, based on the amount of equity, you should be able to do something. Search around BP for more tips on creative financing; I'm thinking a sub2/ lease option combo would work here.

Wholesaling formula is 70% of after repair value minus repairs minus your fee

You might consider doing a joint venture with the seller

where you buy subject to the existing financing, use private money for the repairs, give them a note for their equity after you subtract real estate commissions and closing costs repairs and your fee of 10,000

I agree w/ Brian. I'm in DFW so my formula is ARV minus 22% minus repairs then whatever I need to make in the assignment fee.

So if the comps are $100k and the house needs $15k to sell for what the comps are selling for you're way off with 90k.    Look at square footage, what the other houses have that this does not etc. 

100k ARV with 15k in repairs I'd buy it for $53k If you're using Brian's formula you'd need to be at 45k ( if you want to make 10k on the deal)

The buyer would only NET $92k if they sold it on the open market and paid a realtor plus closing costs and title policy.   If you give the seller 90k for it, what are you think you'd sell it to an investor for?    (hint, he's not going to buy it)