Analyzing Comps and Making an Offer

In real estate you make money when you buy the property and not when you sell. That's why it is extremely important to be able to determine true value and submit an offer for the right price. Depending on the lending criteria normally you would want to offer somewhere around 55-65% of the current value of the property. If you use 60% as your magic number on a property valued at $100,000 that needs $20,000 in rehab your offer will be $40,000. Asking price plus work needed amount to $40,000+$20,000=$60,000 which is 60% of the retail value. In order to sell a property in distressed market you

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