My first call from direct mail campaign

[Michelle Sullivan]

Hi BP Family!

For past couple of weeks I have been gathering and studying information on wholesaling from the postings and podcasts. I have a learned so much and I am very excited to be amongst seasoned professionals.

Okay...I haven't sat on my hands with all this wealth of information I have gotten - I got started! Mailed out my first direct mail campaign last week and my phone rang today.

Here's the scenario:

Absentee owner of a duplex; selling because of tenant issues; property is free and clear. Owner said the property is in "good" condition, some repairs are needed, door needed on garage; roof 5 years old (I am going to view the property tomorrow).

Realquest value $77,000

Comp from a sale in 8/2013 - bedrooms same, comparable square footage sold for $85K

Help me here...how do I calculate the ARV?

[Steven J.]

You want to do a search from Real Quest, Zillow, Trulia, MLS if possible, and see all those comps. Search within a 1/2 mile with same beds and bath with sales in the last 6 months. If you don't have enough comps from that adjust your criteria but know that as you adjust your numbers will likely be more off. A tip from someone I remember was to exclude the outliers. If you have 5 properties the come back at 34k, 84k, 82k,79k, and 110k you'll want to consider getting rid of the 34k and 110k. Reason being is the 34k may have been a total dump that is going to throw your real ARV off. And the 110 was possibly a property overly rehabbed for the neighborhood but someone still came in and bought it. You want to focus on what the average buyer is buying, not the smart cash buying investor nor the not so smart end buyer who wants the really fancy house.

And my biggest suggestion when you decide to offer is that you NEED to feel uncomfortable offering that low ball offer. Feel embarrassed by it. It sucks, but that way you're not putting your self in a deal thats not a good deal. Then you're wasting your time, the sellers time, and others' time.

GOOD LUCK! I hope it turns out well!