# writing s/s offers

Any insight into writing s/s offers? Is there a magic # to start mitigation process. I have two going out now. one will be needing extensive rehab I started at 15% theres only 66 owed with 9 on second less repairs, seller concessions, days on market should be able to justify with my BPO. I’m hoping to secure for around 10 to 15,000 with about 9000 back in for repairs, 500. to the second, after Closing costs, paying for funding and handing off to one of our rehabers to bang together we should walk with a good profit still selling below market.
The other is owed 175,950 with about 15 to 18 in repairs and the market will bring ARV of about 115,00 with a quick sale. This is 1992 3/2/2 pool and its vacant. I have my own BPO being done. Im looking for quick formula to qualify deals?

dad0254 - here is the formula I use (with an example)

ARV = \$100,000
10% discount = \$90,000 ← this is the amount I am planning to sell this property for, after the rehab.
20% profit = \$18,000 ← I calculate 20% from the sale price, not from the purchase price.
Cost of repairs = \$20,000 (conservative number)
Closing costs purchase = \$2,140 (1.5%*(purchase price + cost of repairs) + \$1,260 closing costs)
Closing costs sale = \$8,100 (9% of sale price of \$90,000)
Holding costs (6 months) = \$3,090 (6 months x \$515)
Maximum Offer Price = \$90,000 - \$18,000 - \$20,000 - \$2,140 - \$8,100 - \$3,090 = \$78,669

I have never completed a deal. I am still working on my first one. I created the above approach after reading a lot of posts here and talking with some investors in my local REIA. I am comfortable with my formula because (1) I focusing on entry-level houses in blue-colar neighborhoods; (2) even if I screw up I can afford the monthly holding costs from my regular job.

I hope this helps. Good luck!

Thankx it will help. Backing deductions out works well. have you heard any magic #s I heard 18%? I’ll find out sending one offer out at 15.

My final numbers end up at 68,597 is what i offered.

dad0254 - not sure if I understand your question… What do you mean by “backing deductions out”? And the percentages?

Thank you.

I start with what I will sell for then back out all my repairs, seller concessions ( get that from seller about 50% of the time) gives an as-is # I then subtract the discount for a hard rehab, ( more then a fluff and buff ) My start offer is 18 cents on the dollar. I legitamize my offer with my bpo, repairs, pictures, time to sell, % of props on markt for that area, sex offenders, schools ect.
I heard that 18 % is the magic #. I’ll see!