How do I include mortgage, liens, etc into offer price?

[Jack Phillips]

Hi all, Im a new wholesaler. I really need help because Im struggling to solve this problem on my own. 

Ill give you a hypothetical scenario: 

Lets say the ARV of a house is $350,000,

$ needed for repairs is $35,000,

and my wholesale fee is $10,000.

The formula I use in NJ is going to be ARV*80%-Repairs-Wholesale Fee = Max Allowable Offer (MAO). (IF YOU LIVE IN NJ AND USE A DIFFERENT PERCENTAGE IN THE FORMULA, I.E. 75% OF ARV INSTEAD OF 80% OF ARV, PLEASE LET ME KNOW THANKS)

so: $350,000*80%-$35,000-$10,000 = Offer Price of $235,000

If the homeowner has any liens or owes money for the mortgage still do I subtract the amount they owe by the offer price and only offer that much? Or do I offer $235,000 still and the title company will figure it out? Thanks a lot