Deal Analysis- Advice Please!

[Josh Adamo]

Ok BP I have recently started a direct mailing campaign and have had a few calls. I am actually in the middle of trying to put a deal together now and need some experienced advice.

I am targeting probate and have a client who inherited a property and seems pretty motivated to sell. I have not yet done a walk through but she just called me so i got all her information and information on the house and want to just get a quick quote to let her know where i at on the price give or take the condition of the house for repairs.

The house's A.R.V is around 55,000. That being on the low end, some houses have sold around 65k for same bed/bath and sq footage.

House will need a little bit of work for sure just not sure how much yet. I'm trying to wholesale this house and just curious where i should be starting on my asking price. The house is on a septic tank system and the house was built in 1991. They bought it in 1994 and currently only owe about $3,500 on the house. Its a 3bd/2bth house, split level with a basement but basement is not finished. Has central ac and the outside coil system was just recently replaced but i dont think the furnace was. Back deck will def need a little repairing and the house will def need carpet and paint inside and out. House is also all electric, no gas.

What do some of you experienced wholesalers think about this?? Still have not done my 1st deal yet so im still learning and soaking everything up and trying to make as few mistakes as possible. Thanks for all the help!!!

[Steven J.]

@Josh Adamo What Brandon gave you is a good quick analysis of where you should start offering. I've also come to a recent epiphany. I think in one of the podcasts somewhere it was mentioned that you offer should be embarrassingly low. I've practiced this a few times now where I can tell the seller is looking for top dollar or even 90% ARV and, as wholesalers, we can't work with that. I let them know I won't waste their time at the moment because my offer is going to be well below what they are hoping for. I've found that by not giving them the chance to be insulted they are automatically more trusting, because I don't want to get their hopes up. And then they have asked what is my ball park at which point I'll give them an idea of what I'd start to consider sight unseen. I then wrap up the conversation with "if things change and you need to unload quickly I'd be glad to hear from you again."

Good luck!