Updated over 6 years ago on . Most recent reply
What to offer on hot lead? HELP :)
So I've got a property which needs a central AC and flooring. Maybe 10k in total. ARV of 110k. In great condition, really beautiful home. Has been listed for 135 for half a year, dropped to 130 for a few months, and then dropped it to 120k last month... (no realtor contract)
Guy moved out of state, and is very very motivated to sell. Free and clear title. knows 100% that I need to make a profit on the property. He won’t give ballpark because “I don’t want to cut my own throat, but throw me an offer... trust me you’ll be surprised.”
And finished our conversation with “and I’m seriously not bullsh***ing you, make me an offer you’re gonna be amazed”
I don’t know what to offer, this would be my first wholesale deal. If anyone experienced could give me some pointers I’d very much appreciate it! I don’t know what a cash buyer would be willing to pay for a property like this. It could be a very quick flip or fix n rent.. because it needs so little work.
If someone could tell me what you (as a cash buyer) would buy a property like this for, it will give me an idea of what to offer.
Thank you so much for any help and advice, I truly appreciate it! I know many of you expect everyone to have funding available if they were not to be able to find a buyer.... but that’s why I’m doing my due diligence in making sure that if I get it under contract, it’s a no-brainer for the end buyer.
Most Popular Reply
With an ARV of 110k I would run this calculation
( ARV * 0.7 ) - Rehab = Offer
110,000 * 0.7 = 77,000 - 10,000 = 67,000 offer
Idea behind the calculation. You want your purchase and rehab to be 70% of the ARV. This will allow you room for expenses and fees in the buying and selling process while still retaining a profit that's worth your time.