Making Fair Cash Offers on SFRs with A LOT of equity

[Andy Cross]

Hello BP Fam!

I'm prospecting a property here in CA, and it looks like it's about to go to sale in about 8 days. The owners have about $290K in equity in the home...however, has it listed on the MLS at the top of the market (needs repairs...hmmm....wonder why it hasn't sold?).

I have always been taught cash offers: 70% of ARV minus repairs. If the seller accepts the offer from this math, they would only get about $45K at closing. $245K loss in equity.

I get it...the homewoner could get nothing at all if they are foreclosed. But, in my heart of hearts...this just seems wrong. And I also get that we're in this business to make money.

Of you experienced investors, do you ever feel this way when making offers? Is this something I have to start getting over if I'm going to be successful in this biz?

Thanks!

- Newbie Investor, Andy