Holy Cow... I Just Made My First Offer!

Congratulations! That will be an awesome deal.
Too bad your friend wasn't more on board. She just gave up her commission for lack of grabbing onto your "vision".

Keep us posted!

Rina

Yes, I feel bad because I was getting some great perks having a realtor as a friend (wink wink), but everytime I told her I wanted to make an offer she would tell me, "Well, it says you have to be pre-quaulified with the bank who owns the REO." I was like "we're offering cash, we don't need to be pre-qualified." She just didn't get it. So, I am praying that this deal goes through, so I can show her it works and then hopefully let her see the light! Matt is so right... you have to call the shots with the agents. They tell you a bunch of nonsense, but act like they know what they're talking about. I am taking title as "my name", trustee exact vesting TBD at close of escrow. The sneaky way of getting around the and/or assigns. The agent tried to tell me that the banks will not allow a trust to purcase property. I had to tell him I do it all the time in order for him to write the offer the way I wanted it.

U have me jumping for joy in my house for you and I dont even know you. Lol...I am happy to hear that though. I think I will be making a few offers Monday morn. Today I acutally went to look at a few houses an agent sends for me but she never emails me back or or returns my calls. But she send s me listings. But any way I went to look at the listings she sent me. I believe she sent me some descent listings but all the listings are listed with another agent. So I am just going to go through them. I tried to be diplomaitc but....Holding me up. I spoke to a home owner today. This house is nice. He showed me the house. But this guys house is going to the auction this month on the 25th. So today was my first step out and it is amazing how all seems much clearer to me I found 2 other properties I am going to look into in the process. 1 FSBO and I home that just looks abandoned but its in great area. The FSBO prop is in default and the abandoned looking building. Well the guy I spoke to seems he is willing to accpet an offer but is still tryin to get the full amount. I had a good rapport going with this guy. So he said call his realtor and do what I have to. So I am going for it. Gonna call FSBO owner and see what the deal is with him or her because they were trying to sell for a while, a good while. Part of the problem is that they have there price set at almost 100k over what its worth. So I will have to talk to them and see what I can come up with its a nice house needs very little if any work. Sorry ladies and gents for the extended paragraph excited. I feel like I did something. I have a guy who is looking for properties to invest in. So hopefully I will a few he can look into. AND KIMMYJ7601 GOOD STUFF. AND I HOPE ALL WORKS OUT FOR YOU. LETS US KNOW WHAT HAPPENS. PEACE....

Woo hoo Kimmy. I know you are excited. Fingers crossed that they accept your offer. I am excited for you too. So are you saying you put this after your name.....

"Kimmy...., trustee exact vesting TBD at close of escrow. (Should there be a period or comma after the word trustee?)

So that is basically saying the same thing as and/or assignees? What do you mean by "vesting?"

My realtor left me today cause he said it isn't good business to offer that much below the owners asking price. It takes too long to run comps on 30 plus properties. He has tied all his time up once before with another person and lost big time. He said it is bad for his business etc...

So I told him no hard feelings and that this is not for every realtor. I told him that one of these realtors I am interviewing will see the $$$ to be made and jump on this deal. I sure do miss my comps. Oh well...on to the next realtor prospect. LOL!

Okay, the vesting is how/who is going to take title to the property. It leaves it wide open. I told the agent that I don't know which one of my partners is going to take title or whether we're going to put it in one of our LLC's, but that for now I am the trustee. I could only squeeze out a 17 day inspection period, so I will only have 17 days to find a buyer. What I will do is have the buyer give me my fee and fax over a proof of funds letter. Then I will call escrow and tell them who I want on title and provide them with my buyers proof of funds letter. Now, I am completely out of the picture. If the bank says no way, then I will close on the property as trustee (this will be a land trust)and assign the beneficiary to my end buyer. He/she will pay for all the closing costs, etc. After I sign the paperwork, I will then immediately deed the property to my investor and the land trust is dissolved automatically. As for your agent, you don't need him. On page 114 and 115 of Dean's new book, Matt wrote a great letter for finding the right agent. I'm going to use the exact same letter and post it on CL. I have an 800 #vm and I'm going to let the realtor leave their message and pick which one had great phone skills.

Well, I called my friend the realtor because I had a lousy, stupid question about the purchase agreement and I didn't want to mess things up. She was very cool about me making an offer with the listing agent and not her. She told me don't ever apologize to me for going after a deal. She wants to see if it works, I talked to her about wanting to be more aggressive regardless of what obstacles she might think we will encounter. She is still skeptical about my offer, so I guess it will be one of those I'll believe it when I see it things.

Alot of these realtors are so programmed.She is scared of being rejected. Thats terrible. I just hope you keep going hard and keep on making offers. She doesnot yet see what needs to be done. Hopefully she will realize what you are trying to do and what needs to be done. She is scared of change and doing something different. Like so many of us beginners to investing. We eventually get over the fear and timidness. And go for it. So you just keep on going for it.
Kingjuss,

KimmyJ.... U lost me!!! I've done some delving into this website and that was the 1st time I've been totally STUMPED! Can you PLEASE explain that post in layman's terms.

BTW: I'M TOTALLY STOKED FOR YOU!!! MAKE IT HAPPEN!!!

I'm the type of person that likes to have all my "ducts in a row", so I am now looking for a HML to fiance any deals that I may not be able to assign in time. What do you think? Should I just "do it". (I'm just not into wasting anyone's time - including myself)

Okay, I am presenting my offers using a land trust. For example, I am purchasing a house on 123 main street, so my trust name would be "123 main street trust." I tell the bank that I want to purchase the property taking title as "KimmyJ7601, trustee exact vesting TBD at closing" This will allow me to assign the contract without the banks seeing "and/or assigns" on the purchase agreement. Make sure you sign your name "KimmyJ7601, trustee exac..." If the bank questions why vesting (who is legally the beneficiary) can't be determined, I tell them that my partners and I haven't figured out whether we're going to put it into an LLC or etc. The banks really don't care, they just want to see a real person's name on the title. Now I find an end buyer. I tell them that I had to open escrow with me as trustee in order to wholesale him/her the deal. Now I have two ways of closing escrow. The preferred method is to call escrow and tell them that my partners and I have decided for tax reasons that we want the title to read (insert end buyers name). They are going to be the beneficiary. Make sure you get your fee upfront and your end buyer's proof of funds letter first before calling escrow. Now, escrow is either going say okay (and you can now step out of the deal because the end buyer's name is on the title now) or escrow is going to say NO, the bank won't allow that, you need to stay on the title. If you have to stay on title, you get your fee from the end buyer, put them as beneficiary of 123 main street trust, let them provide all the funds for closing, you sign the documents. When you walk out the door, your end buyer is there. You deed the property to him and that now nullifies the trust. Did I explain it better?

Kimmyj,
Nice way of getting around a TRUE "Road Block", That was pretty Impressive, The thing is, Who cares if your Offer gets Accepted? Really? Of course you would like to see it get Accepted, But if anything you gained a VERY important lesson on this deal. Also, This is what you NEED to tell your Friend/Agent....She/He NEEDS to be aware that your gonna be making thousands of Offers and MOST will NOT be Accepted and YES it's a LOT of work, But she/he will get MORE than their Fair share. If the Offer dosen't Embarrass her/Him then your offering too much, This is what you do and this is how you make MONEY doing what you do.

Now, The Reality of it All, Will your offer get Accepted, I would have to say Probably NOT, Will it get Countered....You Bet! I have NEVER heard of a Bank REO EVER taking the first offer(at least not on a Spread like this one), Not saying it's Impossible, But "I've" NEVER Heard of it happening. I will tell you what you will see.....How MOTIVATED the bank is to Sell this Baby, If they Counter with a Figure thats VERY Close to their Listing Price, Say $98,000 Then I would have to say their NOT EXTREMELY MOTIVATED, Not saying 4-5 Counter Offers wont get you close, But their NOT "Itching to get Rid of the Property". Now, If they come back at $85,000 or Better, Then you've Really got something....SULLY

The agent told me they turned down an offer of $85k, but I told the agent let's start at $60k and work our way up. I don't know if it will get accepted, but it sure does motivate you to keep putting in more offers.

Yeah, So roll with it, Just keep puttin' in Offers, REI is Purley a Numbers Game, Also, I like your thinking on your Offer on the REO, Who cares what they Turned Down already, They may have turned that offer down MONTHS AGO! So, I would think they would be a Bit more MOTIVATED than they were back then, SULLY

Thanks for the great words of encouragement! I feel like it is the ultimate seal of approval coming from you! Kim

Kimmy.
I just did the same thing. The bank is asking 99.9k. I told my agent to offer 70k. THe place needs work. I would say around 30k safely. The home is listed as sf 3 bed 2 bath. But it has a basement 1 bed 1 bath and the upstairs is 2 bed 1 bath. If I get it I plan on going section 8 tenants.
good luck!
Oh Sully, nice to see you back

Thanks, I try to post as much as Possible, But It's gotten REALLY TOUGH with Juggling REI and My FULL-TIME J.O.B., SULLY

That is great Kimmy! I hope you get your offer accepted. Let me know if it is.

...and I thought I was slick I am going to call title companies tomorrow to see if I can get my hands on a few listings. I was approached by a banker from Chase - essentially stating we could "wash each other's hands..", but he's proven to be worthless. That's another reason I haven't made any offers yet. I need to establish some relationships in the right places.

My goal is to make some money via real estate investing before the end of this month. I got my game-face on... and I'm FOCUSED MAN!!!

I second that motion... Welcome Back Sully!!

I went direct. I found the listing agent and emailed him direct. I've talked to him once on the phone about a clarification. Technology is so awesome! I just emailed another agent about a property. The key is to tell them that you're not currently working with an agent so they can keep ALL their commission. Of course, when I find the right agent, then I'll have he/she do the offering.

I need to get the LISTINGS. That's where I'm stuck at right now. I ran across this website with pre-foreclosures (which may be outdated), and I've gathered contact (address) information, so tonight I'm focusing on sending letters to the owners (about 12)... Hopefully one (or more) "bite".

Go to this website. They have REO listings by bank. It's not the best way, but at least you can see what is in your area. Also, pop in an address at zillow.com and a lot of the agents are using that service to advertise REO's. That's how I was able to make an offer on this house through zillow.

Here's the website

http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp

www.lenderoffender.com

https://propertydisposal.gsa.gov/ResourceCenter/PRHomePage/loadPRHomePag...

www.southernreo.com

Just this week I went to a seminar and across the hall was an REI club meeting. I met an agressive real estate agent there and she's been sending me tons of REO listings for the last couple of days. So I hope to be meeting with her this week and briefing her on Dean's methods and see if she is willing to make mutiple low-ball offers. Like the 25-1 method. (Expalined in Dean's new book)

So if anyone needs to get listings, you may need to hook up with a real estate agent. You might want to go to REI Clubs in your area. You may find an agent there that you may be able to work with.
You can also meet investors there and start building your buyers list too.

I hope this info helps. It's a start at least.

KimmyJ, How much does it cost to open a Land Trust? What does it consist of?

Michael B

How about Fear? Does anyone experience fear in anyway?

Well let me tell you this, I said I went to a RE seminar this past Wednesday and guess what, the big guru himself showed up there and gave the seminar personally! I won't mention his name here though. (But you can PM me for it) At the end of the seminar I went up to him and said, "one of my biggest problems is fear." He replied, "action melts fear".

I'll DEFINITELY BE LOOKING INTO IT BEFORE I GO TO SLEEP TONIGHT. Right now, I'm printing out these pre-foreclosure letters (to the owners)

WISH ME LUCK!! (One of them is a multi-use building with what used to be a bar on the ground floor - that my grandmother used to manage.. That's crazy!! Isn't it?)

..like the guru said, ACTION gives you courage... and results give you confidence... then power.

...who do I make the letter out to?

Attention: REO Department??

Kimberly,

If you make REO listing agent write offer to the bank, your chance will be almost double.Just try it. Because listing agent represents bank and they know what bank accepts as an offer. Try to establish good relationship and just make offer. It`s all about numbers.And also tell listing agent that they are going to represent you as a buyer. They don`t want to miss this opportunity because of their commision.That means they are going to work on your side.

Good luck.

Great work, Kimmy! My husband and I are soooo motivated by your post! We have decided that by the end of this week, we are going to have made our first offer. Period!!! We have been letting ourselves get behind in our goals due to fear and the excuse that "we are still investigating and researching!". Your offer and the excitement you relayed in your post are contagious. We have said a little prayer for your success, as well as ours! Keep up the great work and let us know how it's going. We are also in the Inland Empire, so maybe we can meet up at a REI club meeting or something sometime soon!!!

What do you think about putting in low offers through listing agents selling a home in prerforeclosure. I have acually have been able to talk to a few home owners and I think that they would accept a low offer. The thing is too is that these folks homes are going to the auction this month on the 25th. So I would like to help. I of them was having a yard sale today, I felt so bad for them. So I would really like to help these people. So I think I will just put offers i through these agents. Low offers that is... Let me know your thoughts on this Thanks.
Kingjuss,

Well, I was looking at short sales (pre-foreclosures) too. I decided not to go after short sales that were already listed on the mls because I found out from my realtor that the bank will accept the offer and drag their feet. You can be 30, 60, 90 days into the deal almost ready to close escrow and then some other person puts in a higher offer, and BAM the bank takes their offer over yours. Suddenly, you find yourself with no property and a ton of time wasted on the deal. The only way I would get involved with a short sale is if an owner called me told me that they were headed for foreclosure if they didn't do something soon. This way you can tie the property up in your name, your collecting all the information and dealing with the banks directly. The property is not listed, so you don't have to worry about another person coming in and offering more money. However, the fact that the property is going to auction may change the scenario for you. I would tell the agent that they can have their comission, but you want to talk to the bank loss mitigator yourself. You'll even do it in front of the agent. I would present them with the facts on how much money it is going to cost them to go to auction, etc. Also, if the owner is still in the property, you may be able to go around the bank and sign papers with the owners. Are the payments reasonable on the house? If you were to take over payments, could you cashflow the house by renting it? You may be able to work out a deal with them letting you assume the loan? Also, you could do a subject 2 with a Land Trust. The owners are the trustee, but you're the beneficiary so you can control the property.