Off market properties

[Sebastian Valdez]

When wholesaling off market properties, how does one know how much to offer to the seller? How can I find out how much the property is worth to run the numbers ? 

[Lydia R.]

Great question! Unfortunately for you (I am in this same boat) you are in Texas which is a non disclosure state. That means sales price data is NOT part of the public record which makes running accurate comps a much more difficult undertaking than if you were in a different state. 

The simple answer to what to offer the seller, as little as they are willing to accept. The longer answer is, use comparable sales to determine ARV, walk the property to determine estimated repair costs and use those numbers to calculate an offer. For example, a house with an ARV of 200,000 and a rehab estimate of $35,000 if you use the 70% ARV formula your offer range would be $90k-$100K depending on the size of the wholesale fee you want to collect.

To get access to MLS comps I strongly suggest you network with some local real estate agents. When I was brand new to wholesaling I met a newly licensed agent at a REIA event and offered to send her all my retail wanting leads (sellers that I couldnt monetize anyway because I was not licensed) and all I wanted from her in exchange was to run comps for me on potential deals. That relationship worked out beautifully! She got tons of listings from my throwaway leads and I got MLS comps on all my off market leads so I could make solid offers and present great deals to my end buyers. A similar reciprocal relationship would be beneficial for you. I have some real estate agent contacts in Houston if you need some. Send me a PM and I will get you introduced!