You can estimate the market value of a property based on comps and, if you have experience with rehabs, how much it would sell for. But what if you’re conversing with the seller and they refuse to give you a number? What are the factors you need to consider before making an offer?
In this episode, Brent Daniels will share his formula for calculating an offer price, taking at least 3 different price ranges into account. He will share an example so that you, too, can make an offer that property owners will go for and that you can profit from.
- Google the property while talking with the owner so you have a real-time visual
- What percentages to throw based on Zillow prices
- 4 things to focus on when doing traditional wholesale transactions: ARV, 6% closing cost, profit, and renovations
- Add in a minimum of $10k for your assignment fee
- More risk taken in a deal should equate to more rewards