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Offer To PurchaseNow that you have an accurate idea of all that is involved in the specific flip that you are considering, it is time to prepare an offer to purchase. So once you have refined all the costs, and have a clear idea of what you will get for the house when it is sold, it is time to make an offer to purchase based on these numbers.If the asking price is more than will allow you to make the profit on the transaction that you seek, then do not make an offer to purchase at that asking price. Instead offer something less which fits your model. Nothing good can come from a flip if you pay too much even before you begin.The offer should be a price you establish. If the offer is rejected, you can reconsider. But the best offer is the first offer which reflects your ability to make the profit you need. Try not to get caught up in the bargaining mentality. If you can pay $125,000 and make a profit, then that should be your offer. If the owner counters with $150,000, you can go right back with $125,000. This can go on and on. But if you know that you can not make your profit if paying more than $125,000, then you have no reason to buy it for more, regardless of what ever time you have spent thinking about the property. What do they say? Better safe than sorry.You will likely need the help of a real estate attorney if there are any amendments to a standard contract. This will be money well spent. And keep in mind that the term "as is" relieves the owner from any obligation once you agree to the transaction with that language.
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Prepared 2006-2011 David Ullian Larson
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