by admin123 Speed matters in off market real estate. Deals move fast, and the investors who can evaluate quickly are the ones who win. Here is the framework we use and teach to every buyer on our list.
Step 1 — Know Your ARV Before Anything Else
After Repair Value is the ceiling. Everything else works backward from there. Pull three to five comparable sales within a half mile, same property type, closed in the last six months. That gives you a real number to work with.
Step 2 — Estimate Rehab Honestly
New investors consistently underestimate rehab costs. Add a 15 to 20 percent contingency buffer on every project. Kitchens and bathrooms cost more than you think. Roofs, HVAC, and electrical are deal makers or breakers. Assess those four points first.
Step 3 — Run The 70 Percent Rule
The classic formula: Maximum Offer = (ARV x 0.70) minus Rehab Costs. This gives you a rough ceiling on what to pay and still walk away with margin. Adjust based on your market and your cost of capital.
Step 4 — Check The Title History
Liens, probate issues, and clouded title kill deals after you are already invested. A quick title search before you commit to a walkthrough saves you time and money.
Step 5 — Make A Decision
If the numbers work, move. If they do not, pass and move to the next one. The investors who build real portfolios are not the ones who analyze forever. They are the ones who move fast on good deals and pass quickly on bad ones.
Want deals sent to you that already have the basics underwritten? Join the OMV buyers list at offmarketvault.com.