If your strategy is to buy low and sell high, then it’s the “buy low” part that gets things going. Your profit from a flip is simply nothing more than subtracting the acquisition cost from the final sales price, right? Well, maybe. It’s really not all that how much to offersimple but from a 30,000 foot view then yes, that’s the essence.

But making an offer takes a bit of consideration. You want to acquire the property at the lowest price possible but you don’t want to insult the owner who will automatically reject your offer and refuse any further ones. So what is the best strategy?

The first consideration is how much the property will sell for and how long it will take to sell it. This means working with your real estate agent when evaluating a possible acquisition to determine the most likely contract price at sale. Your agent can compare recent sales in the area and compare them to the subject property.

Next, find out how much you’re going to spend to upgrade or rehabilitate the real estate. If you find that the repairs will cost too much to fix, eating away at your profit, then it’s time to walk away. If the numbers work out however and there is in fact room for profit, you’re nearly there.

Your offer should be low. Real low. Don’t worry about offending anyone, there are other properties out there but make it a “reasonable” low ball offer. Again, your real estate agent can help craft an offer that the seller will consider but an extreme example is an offer that the seller thinks you’re simply crazy or not serious about the deal.

Your offer will likely go back and forth a few times and you can change your offer after a property inspection. If the seller is indeed motivated and the home hasn’t entertained any offers recently, you can bet a super lowball offer will get your foot in the door.