Jon Barbera is a full-time real estate investor who has closed over 200 deals, primarily in San Antonio. He’s bilingual, understands construction, and built his pipeline by cold calling niche lead lists. After a tough start filled with bad partnerships and low payoffs, he found his stride in wholesale real estate especially in the pre-foreclosure space.
Jon's early deals taught him what not to do. He partnered with a licensed agent who took nearly all the profits and later joined a marketing company that underpaid him for his acquisition efforts.
But instead of quitting, he learned everything about title, foreclosures, and deal flow. Laying the groundwork for his later success.
In this episode of the DealMachine Real Estate Investing Podcast, Jon Barbera breaks down exactly how he doubled his assignment fees with outcome-based offers and smarter deal structuring. Want the full story? Watch the full interview below:
“ARV is an opinion. Repairs are an opinion. When I use those, I’m capping myself.”
Jon realized that relying on formulas like ARV – Repairs – Profit = Offer led to inconsistent deals and limited margins. He noticed that buyers and sellers don’t operate on theory; they respond to real value and outcomes.
So, he ditched the formulas and focused on structuring deals based on what sellers need and what the market will actually pay today.
An outcome-based offer is structured around solving the seller’s actual problems, not presenting a number based on estimated rehab costs or resale value. Jon starts every conversation by asking:
“What do you need to walk away with to feel okay?”
From there, he builds an offer that guarantees that number, handling the problems (foreclosure, title, probate) behind the scenes.
Sellers don’t care about the ARV. They care about certainty, clarity, and a clean exit.
Jon asks a key question when pricing properties:
“If I put this house on the MLS today, as-is, what price would make it move?”
This is his as-is value anchor. He compares similar active listings, not just sold comps, and adjusts based on inventory levels. In a tight market, he can price closer to the as-is number. In a softer market, he prices more aggressively.
He then subtracts his target assignment fee, often $60K+, and starts seller negotiations from below that.
This method allows him to align offers with real buyer behavior, not guesswork.
Jon used to chase low assignment fees and work with buyers who expected $5K deals. Eventually, he made a shift:
“I stopped worrying about losing those buyers. I built a better list.”
He raised his minimum fee to $15K, then $30K, and eventually $60K+.
Did old buyers disappear? Yes.
Did new, better buyers show up? Absolutely.
By solving sellers’ problems and pricing deals right, he built higher-margin deals that closed faster, with buyers who respected his value.
He targets:
He avoids:
This focus keeps his team on track and reduces wasted effort.
In Texas, auction days are predictable: the first Tuesday of every month.
Jon's team builds systems to work these leads early, giving time to:
He avoids last-minute chaos unless the numbers are exceptional and has standard timelines:
Jon filters for deals with heirs, especially when the owner is deceased.
He starts with whoever answers the phone first and often offers $500 for partial interest. If the person wants more, he might structure the deal as $500 now, more at closing, reducing risk in case the deal falls apart.
Once one heir commits, others usually follow. If they don’t, and the house goes to auction, he can claim excess proceeds if documents are properly filed.
“We never lead with, ‘We own part of your house.’ We lead with, ‘You’re entitled to equity, do you want the money?’”
This calm, respectful approach builds cooperation.
When a good deal comes in late, Jon’s team may delay the auction using:
He warns against fraud. Every contract, buyer, and document must be real and ethical.
Sellers in distress aren’t calculating ARV, repair budgets, or net proceeds.
They’re thinking:
That’s where outcome-based offers shine.
Jon lays out:
This gives sellers relief, and gives Jon room for higher spreads.
Q: What is an outcome-based offer?
It’s an offer focused on the seller’s needs. Instead of quoting a price, you guarantee a walk-away amount after solving their key problems.
Q: How do you calculate as-is value without ARV?
Look at what similar condition homes are listed for on the MLS right now. That’s your market-driven as-is value. Adjust based on inventory and subtract your fee target.
Q: How do you raise assignment fees without losing buyers?
Filter out low-fee buyers and build a list of investors who value fast, clean deals. When the value is clear, they’ll pay more, and you’ll close fewer, more profitable deals.
Q: Can you wholesale pre-foreclosures without experience?
No. These are complex, high-risk situations. If you fail to close, the seller could lose their home. Learn the process and build reserves before tackling them.
Q: What if you can’t reach all heirs?
Start with one. Buy partial interest if possible. If the home goes to auction, and your documents are solid, you can claim your share of any excess proceeds.
If you’re stuck doing $5K assignment fees, it’s time to shift your strategy.
You’ll close better deals, waste less time, and grow a business that lasts.