Wholesale question on a lead

5 Replies

I am working on wholesaling a lead. The ARV is 200k to be conservative.

The cash sales in area are 88k total rehab, other is 170,000.

I am told by seller the inside of house has a 70's 80's look to it.

The seller's asking price is about 100k he got that number as it was listed by tax accessor office.

I am meeting with him in 2 weeks. However wondering from other more experienced here what offer amount I should go with and any other feedback would be great.

Before you can know what to offer, you need to have an accurate estimate for renovations. Once you have the rehab estimate, take the ARV multiply by 70%, subtract your rehab estimate, and you will have roughly what an investor would buy it from you for. Then factor in your fee and you will know what to offer.

How did you determine the ARV? I see you mention an $88k house and a $170k house, but not sure what either of those represent... I would be confident on the ARV, and go to the house ready to crunch your rehab numbers (crunch them correctly!!). Once you know the rehab prices and the solid ARV, you can reduce the profit a flipper would assume, and your profit.

Originally posted by @Brian Pulaski :

How did you determine the ARV? I see you mention an $88k house and a $170k house, but not sure what either of those represent... I would be confident on the ARV, and go to the house ready to crunch your rehab numbers (crunch them correctly!!). Once you know the rehab prices and the solid ARV, you can reduce the profit a flipper would assume, and your profit.

Forgot to mention, the ARV,200k, is house similar to subject property.

The other number represent cash sales near subject property.

I would keep looking for 3 like property sales. Start with 3 months history , 1/2 mile radius, same bed/bath, +/- 10% sq ft , +/-10 years. Expand time and distance from subject until you have 3. Just be realistic as to if they are pre or post rehab comparables. Good luck.

Get the Ultimate Beginner's Guide

Sign up today to receive the popular eBook for free!