I am Having A Major Meltdown

What are the comps in the area you are looking at and how many days on the market are similar properties before they are sold?

Agents do not like our low offers regardless and they will be very negative. Just keep on offering until you get a YES !! Don't let them scare you.
Good Luck !!

Warm regards,

Paul T. La Moy

I agree with Evans and Paul. Keep submitting those offers even if you have to use another agent, until a yes comes. You might be surprised. Good Luck.

Sandra

Sandra,

You are right. Before joining this site months ago I rehabed and sold one property, rehabed and kept another. I have three properties right now and looking to expand. During my last rehab property I went thru several agents, until I found one, looked at over 20 properties before finding the one. Remember comps, what they sold for and days on the market do not lie. You guys who justed started with Dean are very lucky to have this site. There is no other like it I have seen and with specific info that guides you. Remember to pick one strategy and go with it to make money. Do not try and pick many at one time, the information and how you spread yourself out will slow you down. I speak from experience! I have changed and things are starting to work. If I can be of any help just ask.

Evan

You may want to know what the prices are in your market by reviewing comps of sold properties in the past 6 motnhs. With that being said, also try to find the best deals in your local area. These deals can come with the assistance of other agents, for sale by owners (FSBOS) or motivated sellers such as estate sales. Do what you are comfortable and what you believe. Do not be influenced by others that believe your offers are too low. Good luck with REI. Believe and Achieve! - Joe

Hey,
BryanSR business will go on without you,This REI thing is business!Pay your respect on the 7 day...Until then,Bring bubble gum and your focus item in REI,And remember...Your fresh out of, Bubble Gum.
I will say this in,All do Respect..."We look around for the answer;Only down the road,We never looked at ourself"

I have been afaid to make contact,For what ever the reason may-be. Anybody reads this statement...PM me,And remind me of Step(1)---Action.

My agent is telling me the same thing "other buyers are either paying Lender's Listing price or alittle over that" when I go to make offers or consider whether to even make an offer if there's an offer already on the table; but he still submits the offer that I tell him I want to submit! So what if the LA is upset with your low offer! If he hasn't realize it yet already; these Lenders have already LOST so much on these properties! Look at the comps--like everyone else has mention--numbers don't lie! Don't over pay on these properties! You submit the offer you feel most comfortable with submitting to Lender's listing agent. I guarantee it they were to submit an offer on the property it won't be for asking!

Bryan, there are couple of things going on here.
1. You need to have your agent pull comps for the areas you are interested in for the last 3 months. In the CMA, I would ask for Active listings, pending, contingent upon other and Sold. The CMA will give you an idea of what is out there, how much it is listed, at what price point is it pending at and what % the of the asking price did the seller take.
2. Banks are holding onto their inventory right now to avoid any further drop in the market. This makes it look like that the market has hit bottom and that inventory is drying up, so people are starting to panic and that is why you are seeing multiple offers on properties. DO NOT get caught up in this frenzy of lack! There is NO lack of properties. Come late September, early October the moratorium will be lifted and a HUGE inventory of REOs are going to hit the market. Patience might be key in your offers.
3. After you have reviewed your CMA reports take a look at areas that might be hidden gems. This will require research from you and your realtor. Look for areas that are old, but have new stores coming in, like Walgreens or CVS Pharmacy. These companies are building for a reason.
4. Finally, I learned a very important lesson from Anita. It is too dang bad that the listing agent doesn't like your offer. You tell your agent that you want all so-called bank refusals in writing. It's called a written refusal. By doing this, you MAKE the listing agent put your offer into the bank because the refusal needs to be on bank letterhead. For all you know, the listing agent is cherry picking his/her offers and hasn't submitted any offers to the bank.
5. If your agent can't handle the pressure get a new one!

Remember: DO NOT get emotionally attached to your deals! DO NOT purchase unless the property has equity or you can create equity. Finally, DO NOT get caught in the frenzy of lack! I repeat there is NO LACK of properties.

KimmyJ

PRESS ON...

Thank you KimmyJ for putting reality of real estate market into perspective. There's not a lack of inventory; banks eventually do come down on their prices.

If your submitting your offers thru the banks agent, they have a Fiduciary obligation to submit the offer. I would suggest submitting thru the banks agent and use your realtor for the "normal market". REO's are subject to the banks selling guide lines and is pretty much unemotional to them. Keep at it! You can submit any offer you want. Proper Market analysis will get you in the ball park , then you can adjust from there.

I have ticked off some agents and brokers with my lowball offers too. I have found that cash offers are being accepted over even higher offers that are financed. I am researching Hard Money Lenders and if the listed price still makes sense with the cost of getting the hard money and rehab/holding fees, I will put in an offer of cash for perhaps listed price or a little bit lower. Remember it is about relationships with these brokers and agents. I had one bring me one this morning that listed yesterday. She was looking out for us.

So I have the HML for a double closing. (They only do a 24 hour loan, nothing longer) They charge 2.5% or a minimum of 2500. Could be a great deal for a wholesale as long as you figure in the costs.

Anyone have any reccomendations for a HML that can be used for a rehab? I need it ASAP. I want to put in a cash offer in on Monday.

Thanks in advance.

Wendy

Hi ByronSr,
It's all about numbers! There's a thousand different opinions out there. If it is not something you are going to equally benefit, then it's not the right choice. The numbers should work for you as well. What your looking for in this economy is no longer a needle in the haystack. It's everywhere now! So in short, stop at nothing to up hold your wish. Find a different dream team if it comes to that point. This opportunity is once in a life time. Don't miss out because someone else has a onesided opinion. Pick yourself up and start walking towards the yes I can make this happen side of town. Success holds many angles! All the best........Lubertha

I was reading your post and have to agree with your Agent. Everything is moving so fast in RE it is hard to keep up. I was thinking about doing the same thing, on the price. It seems that is the way the market is going.

Happy Hunting
charlie-d

I have to admit that I did expect such an insightful response.I'm taking all the advice that I am getting and talk to my agent. I can't let her bring my spirits down.

Thanks again to all.

Do any of you guys use the new site that DG had developed? Do you use the comps on that?

I do use his value market site and it's very actuate. I compared to others and I like Dean's better. Enjoy it while its free for the time being. Best of luck !

Warm regards,

Paul T. La Moy

I have a Lease Option chance I believe. There is a FSBO, that I found for sale $90k.Comps averaged about that in area. Im thinking that I can offer asking and make this work. If I were to lease option the property, I can give him his asking amount,i lease the property for $500-$700. Average rent in area is $900, checking comps, this property adds value because of extra room built in garage, and this home is ground level,others in are upstairs or attached unit. I know that its an investors sale, bought only in april for $25k,already rehabbed. I can ask for no money down, on a 1 year lease option.....

just a thought.....honest opinion please?????????????????

Why would you do a no money down, when your could let the owner pay part of the down payment upfront. This will give you the opportunity to make back money used for expenses and a cushion to reinvest. This looks like a steal to me. Good Luck.

Sandra

Im not undertsanding your comment, if you could please explain to me a little more of what you mean, I think your insight would be a great help.

Don't worry what the realtor thinks. You should continue to offer low. If she gives you a problem find another realtor.

GOLD!

Perfect post! Everyone should bookmark this! I'm serious, this is meat and potatoes here - every single point is so true.

And as to #4, indeed, tell them you want to see their refusal. Both your agent and the listing agent are required by law to present the offer. Don't think could just be the LA who cherry picks, it's not unheard of for the buyer's agent to not submit lowballs because they think it reflects bad on them, or even simply forget to fax it off. Ask for copies of the refusal for sure.

Find a better agent who will put in the offers that you need to put in. You need one that understands what you are doing and will support you.

Jeremy

That is what I am in the process of doing right now. I am looking for another agent to work with.

In NY a realtor has to bring all offers to the seller. It is law. So your realtor has no b...s. Kimmy is right, it looks like your guy is cherry picking. Ask for the refusal letter. Call his card or have him fold and get out of the game...Jan

Keep on track Brian, the rewards will follow. Thanks to all for the good feedback. This will be useful.

I sincerely appreciate the comments on inventory and when it might be heading our way. I was feeling a bit down with the last offer not accepted. I crunched the numbers and actually put in an offer for 160k when the asking price was 151k. I thought I would get it with romm to make a profit. But 20 count them 20 cash offers were put in on that one house in the 3 days it was on the market! Who knows how many other offers there were.

I know I am in the right place with the right knowledge at the right time.

Thanks to you all!

Wendy

Hello,
The two things that mean the world,Too the idea...Contacts and Contracts.

WOW! All I can say is WOW! Very inspirational thread here.

I have not even submitted my first offer yet, but I did talk to a realtor who was representing a house that I am looking at making my first deal on. I wanted to be upfront and honest with her so I just came out and told her that I was a real estate investor looking at buying the property. Once I said that I could feel the chill come rushing through the phone and I did not even make an offer yet. I just asked how much they were asking for the house. I left it at that, because at that point I felt a little intimidated by the blizzard I was receiving. I intend on doing some more research on the area before I make an offer.

I know once I get through my first deal or two that I should be able to shake the jitters. LOL! It has taken me about four months to come this far. Yeah, I know, it's a lot of wasted time.

I just wanted to comment on this since it seemed related to my current situation and gave me a pick me up. Thanks.

Sounds like this realtor has worked with some investors and had some bad experiences. Remember, you are an investor and you make the rules. Tell the realtor what you want and if they give you a problem find a different realtor. The issue with this realtor is that she knows investors have alot of knowledge than the average home buyer and she knows you will not accept certain things.

Thanks. I need keep all that in mind. Pretty soon I have a feeling I will get there. I just need to get over the hill that is that first deal.