What do you think about this deal?


I have a potential deal that I am considering offering and wanted to get a 2nd opinion or two about my offer. Here are the numbers:

ARV: $447.5K
Ask: $397.5K
65% off the ARV: $271.2K

Here is what Im thinking. I will negotiate a contract to buy @ $271.2 (cash). The house is in pretty good shape, so I dont think it will need to many repairs. I estimate that it should take about $75k to cover carrying cost, repairs, and assignment fee.

So that would mean an investor would have to put about $75k in up front, totaling up to a total cost of $346.2k to the investor.

Im thinking that leaves him/her around $101.3 in equity after everything is done based off the ARV.

What do you think. Is that a good deal?

Where did you come up with “65% off of the ARV”? (Actually the number that you threw out is 60.6% of the ARV so it might be time for some new calculator batteries)…

Why 65%

How did you arrive at the ARV? Have you had the property appraised?

Personally, I think that there is little chance of a property owner selling his $447.5K property for $271K but, hey crazier things have happend, I suppose. DO you know that the owner id that motivated?


These numbers are based off the phone interview…I took 65% off to the ARV to factor in carrying cost, repairs, assign fee, etc.

What are you going to do with it if you get it? Fix and flip?

Exit Strategy #1: Wholesale it to another investor

Exit Strategy #2: Lease Option

Exit Strategy #3: Make a some repairs and rent it out. (If I rent it, Ill probably have to get a hard money loan to buy it in cash, then I would refi to a 30 year fixed and let the tenant take care of the mortgage).