Episode Details
Back to EpisodesEpisode 167: The $25K Mistake Wholesalers Make When Pricing Deals
Description
Are you losing profitable real estate deals simply because you are using outdated pricing formulas? In this solo episode, Josh High reveals the massive mistake most wholesalers make when calculating their Maximum Allowable Offer (MAO). He breaks down exactly why the traditional "70% of ARV minus repairs" formula is causing you to lowball sellers and lose contracts to your competitors. You will learn the three different types of cash buyers, how to reverse-engineer their specific profit requirements, and why updating your buyers list every single quarter is the ultimate secret to moving deals fast, even during the slow holiday months.
Listen and enjoy the show!
You’ll Learn How To:
- Stop losing contracts by abandoning the outdated "70% Rule" for pricing deals
- Reverse-engineer your cash buyers' profit criteria so you can confidently make higher offers to sellers
- Identify the crucial difference between ROI buyers and Minimum Lump Sum buyers
- Adjust your disposition strategy to account for slower market periods like Q4
- Build a bulletproof buyers list that allows you to confidently sell deals before you ever market them
What You’ll Learn in This Episode:
- (1:06) Why spending all your time on acquisitions without a clear disposition strategy kills your contracts
- (1:45) The $25,000 pricing mistake: Why the traditional MAO formula is broken
- (2:52) Breaking down the three different types of cash buyers and how they calculate their profit
- (3:58) A live math breakdown of a $250K ARV deal and why one buyer can pay significantly more than another
- (5:46) Why your disposition team must contact your buyers list every single quarter to update their criteria
- (6:10) How the changing seasons and upcoming holidays directly impact your cash buyers' rehab strategies
Who This Episode is For:
- Wholesalers who are struggling to confidently price their offers and frequently lose out to higher bidders
- Real estate investors who want to stop lowballing sellers and start winning more contracts
- Anyone looking to build a highly engaged, predictable buyers list that actually purchases deals
Why You Should Listen:
If you are still relying on the classic 70% minus repairs napkin math to price your wholesale deals, you are leaving tens of thousands of dollars on the table and actively walking away from viable contracts. By listening to this episode, you will understand exactly how different investors evaluate their bottom line, giving you the confidence to offer more money to sellers, close more deals, and sell your contracts effortlessly.
Connect with the Results Driven Community:
- Join the free community by visiting TheResultsDrivenPodcast.com
Follow Tiffany and Josh here:
- Tiffany Instagram: @tiffanyhighofficial
- Josh Instagram: @joshhighofficial
- Website: Results Driven REI
- Get Tiffany’s free resource: www.rdebook.com 26 Costly Mistakes I Made While Building My Seven-Figure Real Estate Business