OfflineA lot of investors claim you have nothing to lose when placing offers, but I feel that you DO have something to lose- Your name and credibility.
People undervalue the power that their name holds. Your name and credibility (or credit rating) are the same tools you use to get approved for those 80-100k mortgage loans and new car leases. I use that same concept when submitting offers and try not to lowball so much. I want a deal, but I want to build rapport at the same time. That same company/owner/bank may have 10 more homes you want but won;t even bother to look at your next offer because you've destroyed your rapport w/them by throwing too many cheap offers. This news will spread (especially with banks) and your offers will go in 1 ear and out the other.
You are correct. Your name is your most valuable asset, and protecting your name and credibility are extremely important in any business. I have always said that negativity spreads like wildfire, while positive spreads like molasses. To protect your name and your credibility with banks and others I make the following suggestion.
When you are looking at property, be it bank owned, FSBO or MLS make sure you do your homework and research. Don’t just shoot offers off without knowing your numbers are correct, and that you have a buyer that would be interested in that property. Something equally important is not pulling out of too many contracts.
Many of the pitfalls and negative can be avoided if you make sure you run your numbers and have a buyer. Whether the buyer is you or you plan to wholesale. Follow that and your reputation should remain intact.
I agree wholeheartedly. Much depends on the reputation you want to establish. If you want to be known as the dirt cheap low-baller then have at it. Just don't come crying to mommy when people treat you like such.
If we flip over the coin and put ourselves in the seller's or lender's position, how would we feel if someone continually submitted ridiculously low offers? I am not talking reasonably low offers but those that offer $50k on a $150k list price.