Help with offer

Bird Dogs, Wholesaling
1

Is the formula the same for making offers on move-in ready properties as it would be on a property that needs to be rehabbed omitting the rehab costs?

For example, I have some sellers that I believe are very motivated from what their realtor told me. The house is vacant as the owner has gone to a nursing home. The owner’s children are in charge of selling the property and do not want to deal with it anymore. Listed price on the house is $74,900. Area comps. tell me it’s worth about $70,000. It is in move-in condition, but a little updating could be done such as fresh paint and new flooring, which would be minimal cost, but would not have to be done.

I guess I’m wondering how to figure out how to make a wholesale offer on a move-in ready house where it’s a win-win-win situation for seller, buyer, and me. Is it the same standard formula for a wholesale rehab, but without deducting repair costs or is there another formula to use it move-in ready properties?

For now I just want to wholesale properties, so I’m looking for ways to do this when I come across motivated sellers of a move-in ready property.

Thanks for any and all help.

Shelley~

2

What is the house really worth? That’s kinda the key to the riddle. If you are going to wholesale it, you need to leave room in the deal for the person that buys it form you to make some money on the back-end…

Keith

3

Hi Keith,

The house is worth $70,000.

Shelley~

4

If you are going to wholesale it, you want to be at about 70% of ARV, so in this case about $49K - any repairs that you would need to make.

I’m betting that they won’t like that number much at all.

I bought a house for an heir recently but bought to rent and hold. It was listed for $74,900 also but I paid $64,900 – she wouldn’t budge any lower. I did about $1500 in fix up and rented it in a few days for $850.

Keith