They usually just say - "well you know, we are in the worst market ever!""

Meat is the worst.

Someone please correct me if this is wrong (I am far from an expert) but...ARV: $95kSo, $95,000 * 70% = $66,500$66,500 - rehab costs.I would assume the worst, and since this house appears to not be "high end" with an ARV around $95k you can do a lot with $30kSo... $66,500 - $30,000 = $36,500 max offer.

This sounds illegal (at worst) but questionable (at best) as the money isn't going thru Closing.

I try to think of worst case scenario and calculate if I can afford it.

I would assume you are going to have to compete with the REO's and price your offer accordingly - then if the flip sides happens you'll be pleasantly suprised and rewarded.Set yourself up for the worst case and then everything else is a bonus.TTFN,Greg

The worst they can say is no.

The worst part is, they must not think that people can smell the BS right away (although a lot of people never smell the BS).

Raymond, if you perform detailed financial analysis on your prospective deal and run the numbers at a realistic worst case scenario and the deal supports the 12% then it is a deal worth doing.

Worst comes to worst and you give the property to the HML.The reality of fix and flips is that you must have some of your own cash. 10% of ARV as a bare minimum, more like 20% to avoid losing the property if something goes wrong.