OfflineI'm confused when I am submitting offers and determining FMV.
ex. I have a deal that I am working on and I have run comps and numbers just as it states in the RBBP. The comps come back and tells me the FMV is $83K. After I have deducted all the expenses, realtor costs, rehab, holding fees, and my wholesale fee I end up with a MAO offer of $43,000. However, the property is listed at $22K.
So my question is what do I offer seeing as how I am above the listing price?
Is the obvious answer that it is a good deal at $22K?
Should I run the numbers off the listed price?
If run the numbers off the listed price, my numbers tell me I should offer almost $0.
Any help would be appreciated.
__________________
E-Z-P-Z
You simply have a great find. You can do either 1 of 2 things, submit an offer to the seller for the 22k or take 2-4k off the listing price and submit your offer with your POF letter. Once you have an accepted offer, start marketing it to your list of cash buyers. Since you are wholesaling, then you can either keep your selling price the same and increase your profit or keep your profit the same and decrease your selling price to sell this property super fast. Good luck
Is $83k the price after you used the ARV x 70% discount? If it is, that's great. Then you have found yourself a deal.
ex. I have a deal that I am working on and I have run comps and numbers just as it states in the RBBP. The comps come back and tells me the FMV is $83K. After I have deducted all the expenses, realtor costs, rehab, holding fees, and my wholesale fee I end up with a MAO offer of $43,000. However, the property is listed at $22K.
So my question is what do I offer seeing as how I am above the listing price?
Is the obvious answer that it is a good deal at $22K?
Should I run the numbers off the listed price?
If run the numbers off the listed price, my numbers tell me I should offer almost $0.
Any help would be appreciated.
83K is the ARV...$43K is the price minus 70%, minus fees and other expenses.
http://www.ohhomebuyers.com