My Realtor's comments on putting in low offers-please help top users

My sister in law is a realtor out there (El Cajon)and I sure hope it wasn't her!LOL! Actually, she & her son just did a reahab project together, she knows about investing & works with investors. PM me if you want her name & number.

Dawn

This is one factor you have to face if your target area is a place everyone wants to live.

My advice would be to focus only on homes that have been on the market for 100 or more days. You might not get a deep discount in San Diego though, but the demand also means you don't need as deep of a discount to profit in a short time frame. Perhaps someone else has ideas on San Diego type places.

If the strategy you want to take is strictly getting deep discounts that can be assigned or flipped I would think about investing outside of San Diego. Go more inland. Maybe Escondido area, or? Also, as the previous posted said, look for rehab opportunities. You may have people passing over a house in SD that is trashed, but the problems are mostly superficial. That can present a opportunity.

You are fortunate if you are in San Diego that you are within a hour or two of a virtually unlimited amount of sizable cities that you can invest in that don't have the same premiums like the beach cities do.

Hello Jason,

I am a newbie student with DG's Family and I recently was looking on Ocwen.com
I did see San Diego REO's that had no offers on them and I was very suprised. I am not sure if you use that site.
Maybe its info. Isnt as up to date. But the Listings in L.A. County that I called on were still Active. I have not yet gotten my first deal under contract. I know its just a matter of time now. I am hopeful one will get accepted. You are not the only one with Listing agents DRAMA! Yesterday I found a killer deal in Brea. Listed at $199k 3bdrm 2bath. SFO I called the agent to make an offer unseen. I asked him have you shown the property? Do you have any offers on it? I am a real estate Investor, He basically Hung-up on me. What a Loser. All I have to say was, "Very Unprofessional". Like I said before Jason, Dont be Discouraged!

Hopeful,and Blessed.

Lily from LA

This. The discounts in SD are directly related to the number of foreclosures in the community. That means Chula Vista, Escondido, Oceanside, parts of Olivenhain.

Or better yet, go the Inland Empire. SB and Riverside county have been absolutely crushed. You will get a MUCH lower price and rent will not be that much lower.

I am with mark! He is right on track. (Glad he is posting again) I have mentored a kid in LA and he is getting properties at 50% off in the suberbs that have great rent rolls. Get it done!

I'd like to make some observations that apply to the previous posts. We spent some time in Escondido last fall and the year before, scoping out that area for investment houses. There are good areas and marginal areas, like in most large cities. We found that offers for bank-owned houses, which may be listed close to the apparent market level or a lot higher, will usually respond to an offer (unless it is already pending).

Listings that are nearing the foreclosure status, including short sales, are generally (but not always) listed well above market. Offers on short sale listings may not get a response for several weeks, especially if the lender hasn't decided what it will really accept. This may be interpreted as not responding, and the result is about the same, but they apparently want to get lots of bids before they decide. The response time in the offer is ignored.

The quality of the neighborhood has a lot to do with whether there are multiple offers, even higher than the listing price, if the listing price reflects the current market conditions. We found a nicely located and landscaped home that is priced pretty low for the times, and it doesn't require a lot of repairs. Our goal was to get one such house at a price that would pencil as a rental without needing to be fed, which has been a major problem in So. Calif. until recently. This one is fairly close, and it is a short sale that the lenders have agreed on a price. There is a narrow range of variables that would make it work or not, but for a nicely located (golf course/country club area), 2/2 with 1,202 s.f. built in 1978, the listing price of $249,000 probably won't be cut very much.

We agree with DGAdmin that rehab opportunities offer the best way to get a real bargain (if you don't underestimate the costs to rehab) in the San Diego County metropolitan areas, but going to Escondido is no longer the low-cost area it once was. With major rehabs, there is little competition, and that is good for the investor. Unless you get a less than good location, the price of a normal property probably won't be a bargain, at least not by DG standards.

cactusbob

I feel your frustration Jason reguarding less than friendly agents! I'm a young guy in my mid twenties and it's hard for realtors to take me seriously apparently. But you just gotta keep on keepin' on and you'll make moves happen! Always encouraging to know other's experience similar challenges. Appreciate all the posts guys, really helps out! Thanks a mill

-Taketheshot

P.s. cbrpower, if you get the itch to mentor another kid, let me know I'm your guy! ; )

Thanks for all of you have contributed here......the education is invaluable.