A property, a wholesale/investor friendly agent...But our numbers....HELP

[Karen Hurd]

I am running numbers on a foreclosed property. Asking price for this foreclosed property is

$460,000 The ARV is $593,945 with 10,000 rehab, $25,000 buyer fee and $12,750 is my fee. My max offer came to $536,250.00. As you can see my max offer is way more than their asking price. I used recent comps. The comps that I used were all recent sales, within one half mile and withing 20% of the sq

I would just like to ad that one of the forum pro's got a number of $397,000. If anyone can help me on how he got to that number; It would be  the beginning of making all our dreams come true!!

I would really appreciate your help.

Thank you in advance.

Karen

[Brent Coombs]

@Karen Hurd Assuming your ARV figure of $593,945 is realistic, the formula Wholesalers often use is the 70% "Rule" which says that Maximum Allowable Offer = (ARV - R) x 70% (ie. $593,945 - $10,000 x 70%, = $408,761). Your ACTUAL MAO should depend on what other expenses you want to allow for, or who you intend to market the property to.

So if YOUR Buyer is also likely to be a Wholesaler, you need to make sure that the "70% Rule" still works for THEM! Maybe that's why your forum Pro took out a further ~$11k before suggesting your MAO be $397k? Cheers...