California Wholesale Scenario Question?

[Raden Mantuano]

Wholesale scenario in the Southern California Area:

Looking to get a property under contract in a desirable city in SoCal which has been vacant and abandoned for over 6 months free and clear only about $5k in back taxes owed however, out of state owner. My partner and I are going up against possibly another wholesaler who's made an offer already who's locking it in high from my guess, but no contracts signed yet, we've built a good solid relationship from our last few conversations, so we are planning to bid over it. However, that current offer is either a bluff or legitimate offer. Here are the current numbers...

---> Current Offer: $227k <---

ARV: $345k-$370k MAX

Rehab Cost: $85k Max  (FULL GUT) 

- Needs new roof which is probably going to be 1/3 of the budget. 

- Foundation needs work

- Haven't been inside but from what we expect or assume its a max of the $85k Rehab Cost budget. 

Wholesale Fee we'd like to get out of it: $30k Max

Original Offer BEFORE we made before knowing the current offer he's accepted: $140k <------

New Offer we are thinking of sending over: $230k <----------

Notes: I am a licensed realtor and there has been lots of showings I've done for clients where the home was more of a light rehab or a half done rehab.. 

Conclusion: So from my understanding, it looks like there is still room for a flipper to make some money off of it if they do the half done rehab way.  So we were thinking of beating the bid at $230k and shopping it around at $245k to $255k. 

Or.. a cash flow investor interested in acquiring the property at discount. 

Just wondering how this scenario should play out? 

- Lowering our fee?

- Not making an offer at all? 

- Low balling?

- Make the offer, subject to inspection and negotiate after? 

Thanks again everyone for all your help..