OfflineHello,
I'm totally new, but have a lot of flippers on my buyers list. For my first offer I'm only submitting offers on fixer-uppers that have been listed for a long time. I want to know when using the 25:1 rule, how do I determine how much I should offer on a fixer property? Obviously not 50 % off as suggested. Also for the 25:1 do you do this everytime you get ready to make offers, or only once or twice to see what percentage you should be taking off of the asking price/ or the market value price of the house when submitting offers. Thanks so much.
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Start with this:
What do your buyers want? Suppose they want 30% below market minus the repairs.
This would be your starting point. From here you would subtract your fee.
One of the biggest reasons we obtain a buyers list first before anything else is so that we know what they look for. You will want to ask the buyers how far below market do they need to purchase to make it worth their time. After you have asked this you should ask them about their repairs and repair costs.
Do this and this should answer your questions.
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Hi thank you so much with the answer. That is helpful.
Karemah