How to make an OFFER?

[Cynthia Hernandez]

Hi, I need some help here with my first wholesale offer. Mind you, if I go through with this..it will be my first wholesale deal. So here's the thing.. This lady wants to sell her house for 100,000. I pulled up comps for it and I got between 134,000-161,000. I already did a walk through her house and it looks perfectly fine, it doesn't need much repairs. The only thing is that I don't know how come up with an offer yet. I have talked to an investor and he said I could do this method. Which is getting the ARV-repair cost - assignment fee= offer...so I got this 158,000x.70=110,600 then 1,675(sqft)X9=15,075(repairs) then

110,600-15,075=95,525 then 95,525-5,000(assignment fee) = 90,525 (offer)

Can someone please tell me if I'm on the right track here?? I really don't want to blow this away. Also another note, she just told me she has a mortgage on it for 92,000.. What do I do??? Someone please show me the right track in baby steps. 

[Christopher Salazar]

Hi Cynthia, she probably wants to make a small profit on the deal if she owes 92K. You are definitely on the right track with your offer. Depending on how tight your market is, you may be able to slightly break the 70% Rule because it's nothing set in stone - just a good measuring stick. 

I would just make the you're pulling comps sold in the last three months, and I would pull between 3-6. If the 158K is the correct ARV, you should have a solid deal at 95K and she will still receive some type of profit. Hope this helps. Good luck!