Good Deal, Bad deal or who knows....

[Sunil Dudeja]

Hello Friends

So this is how I feel when I try to get a property and I see someone buying at a price that does not make sense based on numbers. One thing I know is on me which is I am new. But I have been studying and I tried for multiple properties and did not get any. For example one just today, sold for 109K and wholesaler had a bottom price/start price of 89K. Rehab was at least 50K( as per multiple contractors, my contractor even quoted 90K, but other GCs on the spot said 50K) so I offered 92K. ARV is around 180K. There were multiple offers over 105K. So this is my though process is about what happens, and I like any and all opinions and I hope to learn from the experts/more experienced flippers.

1. If someone buys to rent it their expenses go much lower so they can offer a higher price (though this one was bought for flip)

2. Some more experienced rehabbers can get the reno done for less.( Most likely scenario) and some may be able to save on agent's commission.

3. Someone buys without working out exact numbers. (seems unlikely)

besides this home in the past my bid was beat on homes by 10K or even more.

So I just seek opinions and advise if you can spare few minutes from your valuable time.

Thanks in advance.