Tommy Dobczyk presents two exit options for sellers. Option 1: a cash offer at 20% of after-repair value, closing in 60 days. Option 2: the buyer puts down 20% of build-out value while the seller finances 80%. He frames both as percentages to make sellers justify their asking price.
Chapters
Are you in the Deal Room? That we're looking at, what we should do is offer this, offer this seller two, two choices, a real cash offer because it says they want to get out and exit fast. So if they're really interested, they will take a cash offer of approximately 20% ARV. Anyway, the— we want to offer a cash, cash offer of 20% ARV. They need to return to us 3 recently sold properties that justify the ARV. And what— and it can be a single family, it can be mobile home park, whatever they think they want there, or whatever they think they can ARV. We will cash offer that, close in 60 days. Okay, that's option 1. Option 2 is based on the future value of what can actually be built there. We will pay 60% of that price of what they think can be built there, and they will finance 80% of that, and we will come up with the other 20%. So put all these in— put all these numbers together without using hard cash values, because they have no logical explanation for the money they're asking for. So if we talk in terms of percentages of value, this will entice them to start putting up hard numbers they can prove. I also want to see proof of a $60 million offer, otherwise I'm basically bullshit.
