How to Quickly Come up with an Offer Range for a Real Estate Flip
by Ryan Moeller on October 3, 2010
When making purchase offers on properties to flip, it is important to have a good system. I believe that you should be able to quickly figure out your offer range to buy real estate, make lots of offers, and then do thorough due diligence once a property is under contract.
The 3 things you need for getting an offer price for a real estate flip are:
ARV * 50% – rehab
ARV * 70% – rehab
So if ARV is 100K and rehab is 20K your formula looks like this:
100K * 50% – 20K = 30K
100K * 70% – 20K = 50K
Your real estate purchase offer range is 30-50K. This system is quick, simple and effective. You can delegate most or all of the research then you can focus on finding more prospects. This has worked time and time again. How do you come up with your offer range?
Photo: Cellular Immunity
Article Source: The Bigger Pockets Blog-An Online Real Estate Magazine
Link to article: How to Quickly Come up with an Offer Range for a Real Estate Flip