You won't know their rehab numbers, but it's good to see the ARVs actually end up at.Also it can be helpful to study the data to see who is really buying.I had two different wholesalers bring me the same REO last year that was $98K purchase, $200K ARV.

Yes, you are), basically you are stealing future appreciation to the point where the property becomes equal in value to that sale price.A better deal would be to make a profit on the rehab, just say 15/20% on the 10K as a contractor fee taking it to 30K and all of the increase to its new market value, say 37K or 40K.

Welcome @Marcin JurkunThere's lot of data to mine here at biggerpockets - and lots of brains to pick.

Scott's Book on Flipping Houses has been invaluable and essential not only in learning the fundamentals, but helping me get over the hump and getting out there and making it happen!

Your provider will have all of the wrong entry point data available for you as well.

Do not accept simple statements such as "collection was verified" or a screen shot from the credit reporting agencies data base.

That's commonly determined by looking at tax assessor data and calculation a ratio from their numbers and then applying that to your basis to determine the improvement basis.

The information I've got from fellow members has been invaluable.

The underlying value of an option is primarily the expected appreciation in value over the option term, not what ever you can clean someone out for.The price and terms need to be stated, at least the price as it must be stated, you could say cash or financing and later decide to offer seller financing, if you offer financing with the option them those terms must be spelled out.If he is going to live in the unit sold/purchased you may have Dodd-Frank issues.

Determine what information you want, which data fields will need to be created and populated later for your mailings.Here's my challenge for you: will you do this until you get a deal flow or will probate be another shiny object opportunity that is replaced by the next distraction?