Making my first offer

After years of dumping monies into various “learn to invest…” programs, I FINALLY found a property to wholesale and make my first offer on. Now I’m confused by sooo many different ways to figure my Max. Allowable Offer to the bank. I’ve done math based on the $200K ARV and on the banks asking of $174,900(I was told the banks ALWAYS drop the price by 82%; giving the new asking price of $139,920). One offer is in, I’d really like to put mine in, but need some help. I’ve come up with offers of either $92,000 or $68,800. One based on ARV, the other on the lower asking price. Rehab will be $25,000(based on $10/s.ft) 2590 s.ft, needs paint,carpet,kitchen appliances,replacement of tiles in the entry,bedroom doors, bathroom light bulbs and a good power washing of the exterior. My assign. fee is $10K. Do my numbers work? Waiting anyone’s help!! I forgot to tell you, the property is in a very desirable area of Stockton, Calif.
Anxious in Calif.

Do you have a buyers List?

I would offer $87k MAO or less. But the real issue is do you have buyers lined up to take the deal off of your hands. Don’t get caught up thinking you have to have any one deal. There’s plenty of good deals on the market place with even bigger profits then you think you are going to get off this property. Walk into the deal right by having your wholesale buyers lined up to buy a deal if you get one.

Desirable areas are nice, but “desireable” for you is getting the deal tied up with numbers that make sense for your whole strategy. Getting a property in a desireable area at the Wrong price will leave you feeling undesirable because you won’t be able to sell it. Desireable areas are just a plus added to the fact that you bought the property right. The only house I want is a house I bought with good numbers first.

The fact is you need to have YOUR numbers work and not worry about what someone is asking on the property. Out in our market we simply use 65% x ARV - repairs - fee. We do about 10 deals a month on those numbers. The other factor is that you need to figure your numbers on this deal, make the offer and get to the next offer. People get very held up on offering on a single property. It’s like trying to bank on winning the lottery. Make lots of offers and have lots of buyers.

Hey Wesellhomes,

How do you structure your offers to get 10 per month?
Like how much EMD you offer?
Inspections period? et al…

Also, when you offer on homes do you find homes that are already listed at the 65% ARV or do you just offer your MAO regardless of what the listing prices is?
ARV 200
Listing 180
-65% 130000

  • repairs 20000
  • fee 5000
    = 60k your offer (on a listing of 180k?)

Thanks for all your responses, it really helped. I joined a group called “findit/fund it” also known as Ameraco. I put a house under contract, per their criteria, and submit it to their “buyers” list of over 1300 investors, then hope one picks up the deal. I just want to make sure my numbers were right. So what I’ve gathered from yall of you, I start with my ARV and subtract form there. I found a great site for POV’s that don’t cost. I was actually amazed, in case any of you are newbies like me, it’s Just follow the instructions, and print it out. Thanks again for all your help.

“I joined a group called “findit/fund it” also known as Ameraco.”

Hi Joanne,
I’ve read on other boards about this company. It is not good stuff. You shouldn’t pay to have someone look at your deal. I will PM you a better and FREE place that you can post your deals on.

I’d love to know about the free site as well to post deals on.


Who told you that banks are dropping prices by 82%? Which banks drop theirs at 82% I want to buy some SFR today?

Some free sites that I post mine on are Craigslist, Backpage, eBay Classifieds, Postlets, Rehablist, etc.

Hope this helps!