Wholesaling question?

[Paul Huntley]

I need help with this deal.
ARV 219,000
(.65*219,000)-10,000[repairs]-21,900[holding]-10,000[wholesale fee] = $100,450 MAO

Now the seller currently owes $157,000 on the property. Would it be an insult for me to offer the seller $100,450 knowing that they owe more than my offer. Should I at least offer what the seller owes on it, or should I not even worry about what the seller owes and just make offers based upon my numbers? I wanted to get an opinion from an experienced wholesaler on how you generally make offers. Any help will be appreciated.