Am I Doing This Right?

[Claudia Rottenberger]

There is a property I am interested in wholesaling. It's in a great neighborhood and the seller is asking for $189,900. The ARV is $270K. Repairs are estimated at only 15K as the property only needs some cosmetic work. My wholesale profit will be 6K. Tell me if I have structured this correctly. According to my calculations below, we would be offering 168,000 to make this deal work. Is it worth making an offer this much lower even though they'll still be making about a 62% return on their sale? Is this what you would consider a "good deal" for my seller and buyer? The person who put out the ad said they are real estate agents and wholesalers. He said the sellers are motivated to sell ASAP. Please correct me! I'm very coachable. Be nice :) Thanks!

ARV: 270,000 (X .70)= 189,000

Repair Costs: $15,000

Wholesale Profit: 6,000

189,000 - 15,000 - 6,000 = 168,000.