Newbie - Question about Correct way to make offers on 25 to 1 system for MLS leads

Im sure its 65% of asking price and the properties have to have a description that has urgency.. for example key words like vacant, as is, moving out of state or anything like that

Check out the April 16 webcast. They say to start at 70% and adjust after that. The comps and earnest money comes upon acceptance of the deal. Thats were contingency clauses are neccessary.

Thanks very much for the info… I'm re-watching the live webcast at http://www.edgelivecast.com/watch/replay/ and they say basically to just take the asking price and * .7 or .65 and make that your offer…

What I don't understand is that I thought we wanted to shoot for being able to sell the home to another investor (if wholesaling) at a minimum of 70% of the ARV..

If so, it would seem that we're not accounting for our assignment fee, a ballpark $ amy for closing, repairs, etc..

Am I missing something or are they saying to take asking price * .7 or .65 and THEN deduct the assignment fee, repairs, etc and THATS what you make the offer that you tell the realtor to submit?

Can anyone answer this question?

Here is a question. What if the seller has reduced his asking price to 50% of ARV?? Do you think he will accept an offer of 50% off his list price. Now I know everyone has there own strategy and some like to make it sound easy by just blasting out offers at X amount less than a list price. The idea is to do your due diligence after the offer is accepted. To me, and this is only me, I need to know what the properties ARV is. I go by ARV when I make my offers. My buyers also look at ARV. MINUS repair costs. MARKETS VARY!!!!! What works in the twin cities or Detroit does not work in California or Colorado.
California is more like 85% minus repairs, Colorado is about 75% minus repairs.
So you need to know the market where you are making offers.
Here is a basic wholesale formula. It IS NOT CUT IN STONE as some would have you believe.
Our house has a ARV of $100,000. We have determined this from sold, currently listed and currently under contract comps
It needs $15,000 in work to bring that $100,000 ARV. We know this from estimates from contractors at first. Soon we know what the rehabs will cost.
SO - $100,000 X 65% = $65,000 minus the $15,000 repairs = a $50,000 offer
Sell it to your buyer at 70% of ARV $70,000 minus repairs = $55,000 sale price. For a $5,000 fee.

This is a Wholesale formula. Buy and holds, L/Os, subject to, all will take a different offer approach.

Hope that helps,

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC