What should my max offer price be?

[Victor Barboza]

I was driving around to day, and going door to door knocking in hopes of finding leads. I did find on really motivated seller. He purchased his home 13 years ago. The ARV of the home is $135,000, he owes $60,000 according to him. He wants retail value. I did however tell him that that wouldn't be possible due to the repairs the house needs, and the fact that I am giving him a cash offer and willing to close within a few days. What should be my starting price, and what should be my absolute max price, if I am trying to make about $10,000 on this deal? This is my first seller that we get this far with. I was working with another one previously but he ended up going to jail.

[Peter Vekselman]

In negotiations always try to get the price out of the owner first.  If you are not able to do that always go in low and then watch / listen for the owners reaction.  This will tell you if you are in the ball park.

The amount of work this property needs will also determine how much to offer.

The fact he said he wants a retail offer is an indication this is probably not a wholesale deal.

A few options:

make a low ball offer.  go all the way to 70% of the arv and in not a deal make sure to follow up every few weeks.

connect with a local realtor to whom you can flip these retail leads to.  and then once they sell they can pay you a marketing / referral fee for the lead.

Peter Vekselman