How to find out how much to offer seller for their property

[Brian Stone]

Could someone tell me or point me in the right direction on how you come up with the number you offer the seller for the property?

If a property is worth 150,000 after 30,000 in repairs, is that how you find the number? Or do you go by what the seller wants for their house?

Please help. Thank you

[Scott E.]

Brian -

A popular formula around here for quick analysis of a deal is:

Offer = 70% ARV - Rehab Costs

So in the example of a property worth $150k after repair value, with $30k in required repairs, you should be offering $75k - Assignment Fee. If you wish to make $5k wholesaling this deal, you need to lock it in for $70k, and the end buyer needs to be willing to buy for $75k.