Case Study 2 · The Cowboy Sales Process

Objective

This document provides a battle-hardened protocol for calculating a property's true value and structuring a negotiation strategy. We will dissect the process used by elite investors to move from messy data to a Maximum Allowable Offer (MAO). More importantly, we'll arm you with the psychological framework and scripting to anchor a seller's expectations low, ensuring you control the negotiation from the first word. This is not theory; it's a weapon

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Part 1: The Hunt for True Value (CCV)

Subject Property: 7611 Cortland Oak, San Antonio, TX 78254

Before you can formulate an offer, you must know the endgame value. This is the price the property could realistically sell for on the open market after necessary repairs and updates. We call this the Correct Comps Value (CCV) or After Repair Value (ARV).

Step 1: Initial Reconnaissance.

Your first pass is quick and dirty. Use public sites like Zillow or Redfin combined with a professional tool like PropStream to get a baseline understanding of the property and the neighborhood.

Your only goal is to confirm basic specs and get eyes on the asset.

Step 2: The Comp Deep Dive.

In your professional tool (PropStream), navigate to the "Comparables" section. This is your hunting ground. Your mission is to find 3-5 recently sold properties that are as close to a mirror image of your subject property as possible.

Step 3: Establish the CCV.

Filter relentlessly based on the Golden Rules of Comping:

Proximity: Same subdivision or within a quarter-mile. No exceptions.

Recency: Sold within the last 90-180 days. Anything older is ancient history.

Similarity: Match square footage (+/- 15%), bed/bath count, and year built.

Analysis:

For the subject property, the data shows comparable sales clustering in the $230k - $240k range. Based on this evidence, we establish a CCV of $249,000. This is our anchor—a realistic, data-backed estimate of the property's maximum potential market value.

There are no rows in this table

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Part 2: The Hard Math - Calculating Your MAO

Your MAO is your walk-away number. It is the absolute highest price you can pay and still hit your profit target. It is calculated with a non-negotiable formula that protects you from bad deals.

The MAO Formula

The industry-standard formula for a wholesale or flip deal is brutally simple:

MAO=(CCV×0.90)−Estimated Repairs

CCV (Correct Comps Value): The after-repair market value you just determined.

0.90 (The 10% Buffer): This is your safety net. This 10% accounts for all exit costs: holding costs (taxes, insurance, utilities), closing costs on both the purchase and sale, and real estate agent commissions. It protects your profit from the friction of the deal.

Estimated Repairs: The total cost to bring the property up to the condition of the comps that justify your CCV.

MAO Calculation in Action

Start with CCV: $249,000

Apply the 10% Buffer: $249,000 \times 0.90 = $224,100

Subtract Estimated Repairs: $224,100 - $30,000 = $194,100

The Maximum Allowable Offer (MAO) is $194,100.

CRITICAL POINT: The MAO is NOT your first offer. It is the absolute ceiling. Your negotiation must start significantly lower to preserve your ability to make a profit.

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Part 3: The Art of War - The "Comp Story" Takedown

With your MAO locked in, you must now build a narrative that gets the property under contract for as far below that number as possible. The key is to anchor the seller's price expectation to a low, data-supported number before you ever make an offer.

This 4-step script is your primary weapon. It systematically builds credibility and lowers expectations, making your eventual cash offer seem logical and fair, not predatory.

The 4-Step Script Structure

The 4-Step Script Structure

Set the Stage & Position Yourself.

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Build Credibility by Listing Similarities FIRST.

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Reveal the Price & Introduce Negative Context

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Translate Gross Price to Net Reality

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By following this script, you have logically walked the seller from a high list price ($272k) down to a much lower net reality ($250k) without making an offer. You have successfully reset their expectations, making your eventual initial offer (which will be well below your $194k MAO) seem like a reasonable alternative to the long, expensive retail path.

If you’re looking for novations, Prexium is where you’ll find the right leads to close more deals. Start today 👉

The Cowboy Marketer⁠

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