Updated 2 days ago on . Most recent reply
Offering $50k-$100k below Asking
I've completed one flip, but I am returning for more. I have made between 15-20 offers on deals around metro atlanta. Primarily through wholesalers that send me deals. (i work 50-60 hours per week at 9-5...yay). I offer between 70%-75% LTV. I often find my offers to be drastically lower than asking price. Between $50k-$100k lower than asking is where im offering based on the metrics of the deal.
i've double checked my comping systems and rehab numbers. Am i missing something or is this what i should expect currently? Any guidance or experience would be appreciated.
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#2 Rehabbing & House Flipping Contributor
- Residential Real Estate Agent
- Irvine, CA
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#2 Rehabbing & House Flipping Contributor
- Residential Real Estate Agent
- Irvine, CA
You are working with wholesalers that are most the time telling the seller they can get their number (close to market value) to get the deal signed with them. If the deal is not close to market value their wholesale fee is so big the house is basically market value.
The second thing is that wholesalers will give you comps that maybe off because their comps have pools and your subject property does not and they are trying to get you to bite on their price. They'll send you comps in a historic district when your property is not in the historic district and less in value because of that.. and much more.
Stick to "your" numbers no other numbers, and make sure you do not bend. The time you bend on your numbers to get a "deal" is the time you lose money.
- Peter Mckernan
