Making wholesale offers

4 Replies

I think Brent with TTP explains it really well in his youtube titled: 

How To Come Up With Your Offer Price | Brent Daniels LIVE

I'm no pro but essentially you need to find comparable sold properties in the area that are fixed up to establish an ARV. Then you work backwards to establish your offer price. In my market I will look at comps in the last 6months; +/- 200sf; within 5 years of year built; single story to single story ect.; stay in the neighborhood.

Exactly what @David Frandsen said. 

I would really try to look for flip comps. Comps that were bought maybe 6 months prior to the last sale date and renovated give you the most accurate depiction of where you need to buy it at. 

The tax value doesn't mean anything. However, this is something you will have to educate the homeowners on. 

Originally posted by @Ethan Neumann :

Exactly what @David Frandsen said. 

I would really try to look for flip comps. Comps that were bought maybe 6 months prior to the last sale date and renovated give you the most accurate depiction of where you need to buy it at. 

The tax value doesn't mean anything. However, this is something you will have to educate the homeowners on. 

Adding onto this, I like seeing what the as-is comparable properties sold for cash within a .25-.5 mile radius from your subject property. This lets you know what investors are paying for homes they want to flip. Subtract your fee and that's your offer. That's how to come up with an offer quickly and easier without making a (bad) estimate of repair costs and multiplying by a percent, etc.