Just starting and facing obstacles... or an approach that's no longer applicable...

Hello fellow members,

I am a new R.E. Investor trying to get my 1st deal. Per current status in life, im working on 'Purchase and Sale Agreement' and 'Assignment of Contract'. Im using sites recommended by others to get a properties current value and since I live in Tucson, AZ. im also using http://gis.pima.gov/maps/landbase/parsrch.htm and selecting 'Assessors Parcel Detail', then selecting 'Sale Comparables' at the top of the page to get my comps. This is what I've been doing once I see that properties value...

Lets say it's estimated at $100K. I then subtract
-Closing Costs (3%) = $3K
-an estimated $5K in repair that my Buyer will put in
-my profit of $(5-10)K
The remaining figure is $87K or $82K. This would be my offer amount.

I was informed that my strategy is correct, just not applicable for the market now (given that the shift in AZ is moving quicker). Thanks Valuni. It's a bit discouraging because I've called numerous owners with my offer amount, and since my calculated offer is too low of an offer they'll except, I lose the deal over the phone. I've even had an owner respond with, "Are you joking?". I'll have to adjust my offer amount, but how much of an adjustment? Once the owner tells me what they'll take in cash (and since my calculated offer is far too low), do I increase my offer amount to $5K just below their excepted cash amount? How should I handle/approach a wide spread between my calculated offer amount and the owners excepted cash amount?

It could be that the owners im contacting are not AS MOTIVATED or in NEED to sell...

I have the drive and motivation to move forward towards success (am still making calls), to better the lifestyle of my family, but I seem to not be able and get over this obstacle of 'my offer amount'. I seek the expertise of my fellow members on overcoming 'that first deal'.

Fernando