OfflineI recently had a Hedge Fund Manager answer one of my craigslist ads. I have had a couple of meetings with him to define his criteria and my percentage fee. I called my realtor to start sending me REO deals matching his criteria. I originally submitted 3 deals and received an email back promptly stating he liked them and that he though that we were going to do A LOT of business together. He's doing his due diligence now and waiting to hear back from him in a day or so.
That's how I sort of fell in to working with REO's. Now here's the MOTHER LOAD PART. My realtor sent me a 59 property REO package. I wasn't able to contact the H.F. Manager last Tuesday or Wednesday (he was finalizing another deal). SOOOO, I decided to try advertising this deal on sites that have some real estate investor & hedge fund groups. This was Wednesday afternoon, within a few hours I started receiving emails requesting info on location & descriptions. I responded with just the state and listed the type, BPO value, status, & condition of each property. Again I received a follow up email stating their interest and send them details. My next email was attaching a "Non-Disclosure Agreement" explaining that this had to be executed and returned before I could release any further info. Now, to my surprise within "minutes" I received (4) agreements back.
This all took place from Wed. night to Fri. noon. I'm on hold until Monday because of the Easter/Passover weekend. Since then, I have 20-25 more email request, but I want to wait until after Mon.'s meeting to respond and be much better prepared!!!
I have an early appointment with my realtor to gather all the info so I can send it back to the investors. But, now that I've had a moment to breath (This whole thing caught me off guard!!!) I'm formulating game plans on how I can complete this deal and gain the most. Here's goes:
1. Partner with investor- buy, repair, sell off individually, share in profits- several of these big boy type investors have expressed this as a possibility!
2. Next option- Buy on back to back closing- send offer in for let say 65% below BPO & close A-B then have buyer at 50% below BPO for B-C closing for the complete package
3. Or same thing, but have several B-C buyers and sell off partials of package.
4. Work on referral fee only.
I've been contacting people to see what I can line up to complete this deal with the most gain. So, this is what will be discussed at Mon. meeting. I'll keep everyone posted!!!
Happy Easter/Passover to everyone!!!
PMD
"A LIKELY impossibility is always preferable to an UNCONVINCING possibility!"
PMD,
In what category did you place the ads? I have a website and 800 # but no luck with calls or traffic to site. I have been placing ads on craigslist for my website and 800#. How did you word the ads, are you going toward buyers, investors, homeowners? I am newbie and really am trying to find my niche and ways to help others.
Congats on what you've accomplished so far. Can't wait to hear about what happens next for you.
Happy Easter to you!
I place my cl ads under real estate for sale by owner, real estate wanted and services offered. I wasn't getting much traffic, but then I figured out something. People are lazy. They don't want to enter your website information unless you have a compelling ad. Well, my ad is decent, but when I added my website link in my add, my response was 2 to 5 buyers everytime I updated my ads.
I originally started out placing ads on craigslist, kijiji, backpage, etc. under several different headings- for sell by owner, for sell by agent, for rent, housing wanted, real estate services, etc. Any and all headings that applied to real estate on those sites. That how I got started. I was lucky and a local hedge fund responded to one of these. But, this MOTHER LOAD DEAL is happening because of thinking outside the box and trying different things. This deal has a min. potential of $60,000 to over $1.5 million or more depending how I can work out a deal with the "big boys" investors!! I'm so excited I can't even sleep and it's all because I took "ACTION" and that action is paying off in a totally different direction & way I intended. I'll keep everybody posted over the next week!!!
PMD
"A LIKELY impossibility is always preferable to an UNCONVINCING possibility!"