Find out the simple formula that will ensure that you don't offer too much when flipping or wholesaling real estate.

1. How toCalculate Max
Offer Prices for Flippers &
Wholesalers
Analyze Real Estate Deals Like a Pro

2. So, you’re wondering what’s the
maximum offer you can make on that
house you want to flip or wholesale.

3. Here’s a way to figure that out.

4. What goes into
calculating
max offer?
You work your way backward from the end result.
How much are you going to flip the house for?
This is your After RepairValue.
What is your profit margin so that you can cover cost of sale,
holding costs and still make money?
Typically this is calculated at 30%.
What is your cost of repair?
If you’re wholesaling, what is your profit margin?

5. Max offer
formula
Max Offer = ARV * 0.7 – cost of repair – wholesale profit

6. Example
If fully renovated, comparable houses in the same neighborhood sell
for $250,000, that’s your ARV.
Let’s assume the rehab costs $40,000.
If you’re the wholesaler, you want to make at least $5,000.
Max offer = 250,000 * 0.7 – 40,000 – 5,000 = 130,000

7. Simple.

8. Don’t forget
If you buy for less, you have a bigger profit margin.
If you can’t buy at or below your max offer, walk away, it’s not a
deal.
Wholesalers serve rehabbers. Rehabbers will gladly allow you your
profit margin when you bring them deals that guarantee their profit
margin.
Most important…Don’t be greedy.

9. There are no secrets in
real estate.
Any questions?
@bramspiero
Analyze Real Estate Deals
Like a Pro
Bram Spiero