Wholesaling and proof of funds questions.....

[blueprint]

tampasteph

so to be clear, i want to offer the seller 40% below fmv for the property? so if a property is listed for 300k i should offer 180k for it? is that right
?

[tampasteph]

Blueprint,

It's hard to give advice like that since I don't know anything about your market.

I think 60% of ARV would be a safe bet, though.  You also really need to get to know your home values so you can estimate an accurate ARV.   If you can't do that, then your 60% of ARV formula is useless.

Steph

[blueprint]

let me get this right, so when i see a property i like, i should offer the seller40% less for the property? so if a property lists for 300,000,  i should offer 180,000 to the seller to purchase the property?

[tampasteph]

Blueprint,

It really depends.  What are you planning on doing with it?  Wholesaling it?  If so, you will want to find out what investors are paying for homes in that area.  How do you do that?  Network.  Study the recent comps.  Take investors out to lunch and ask questions. Study the market.  Go to REI meetings and observe.  Etc. Etc.  You really need to know your market before you jump in and start making offers.

Your offer should be based off of the ARV (after repaired value) of the property, NOT the list/asking price.  You HAVE to know what a property is worth before you can make an intelligent offer on it.  The listing/asking price of a property is not always a true indication of what the property is worth.

You have to do your homework.

Steph

[blueprint]

yeah i plan to wholesale it.. I have studied my market. i have realtors and etc. i have actual comps and printouts of the breakdown oh sold homes, under contract homes and active homes from realtors in my market.  the numbers i threw at you was just for example purposes. thats all.