Offering on Unlisted Properties/Driving for Dollars

[Lauren Chiozza]

I haven't seen any recent posts, but found some from years ago so I thought I would throw out the question again.  I am looking for the best strategies when it comes to offering on an unlisted property (vacant, fixer, needs work, haven't seen the inside) after taking the driving for dollars approach.

I've written a few letters so far to owners of property (SFH) that look to be in need or repair or are vacant.

What is the best strategy for negotiating a sales price? Do you offer a number in your initial letter to the property owner? Offer say, 70% of ARV minus repairs? Do you wait for the owner to throw out a number first? Do you simply go by the tax value minus repairs minus a realtor fee (if not using a realtor)?

I've read that some investors prefer to offer high and give an actual number to attract initial interest in the first letter, then work down once you see the inside based on repairs needed.  Thoughts on this strategy?  I value being honest and upfront when doing business and don't want to take advantage of any sellers, but also am in this to get a great deal!  I'm in the Nashville market and some of the tax values are killing me where the value of the land is over 2x the value of the improvements, which has me scratching my head a bit when it comes to offering a price.  Perhaps I need to shift my neighborhood focus.

I appreciate any input that has been successful for other BPers when offering on unlisted property.  Thanks!