many offers no deals

Frank,

Glad to see you're out there putting in the offers and taking action!!

Have you recieved a hard copy of denial or are they just telling you it hasn't been accepted? ALOT of dishonest REAgents that don't even submit the offers.

Check into the FSBO and try that approach.

actually I have only been told by the agents the offer has been denied and I have countered up to where I thought it was no longer a deal. I have found myself getting beat by people looking to live in the house which allows them to go much closer to the asking price sometimes the full asking price .

True Hell i think some times they lie to keep money in there pockets .

I get a little frustrated at times but ill never quit . Ill make things happen sooner or later .

Frank,

I have found that 90% of REO properties have some sort of "tie" to the Agent and the agent usually is working with either an investor or is getting them on their own.I have been fortunate enough to have the agent I am working with to be one of these Brokers...so they actually "feed" REO leads to me. I used Dean's strategy of "loyalty" to my agent and give them the buyer deals on my personal properties in they have a vested interest in helping me on the REO front...because I keep finding and sending them easy closes.

Bottom Line...don't give up and see if you can go around them to get to the lender directly if you are getting "roadblocked". Remember...use the fact that you are putting in so many offers to get them interested and they will cooperate eventually.

Good Luck!

Jon

You have an 800 credit score and 20% cash down payment? You need to be making 25 offers a week not 23 offers over 18 months. Are all of your offers only made using an agent on a listed property described as an REO? Go to all of your small local banks (not banks like wells fargo or US bank etc.) and ask to talk to a loss mitigation manager or asset manager (anyone who handles delinquent mortgages). get to know them a little bit and find out if there any properties they have foreclosed on and would like to sell.

You are at an extreme advantage to build cash flow with an 800 Score and 20% down. What is your investing plan? Are you looking to Buy, Fix, and Sell or are you interested in Buy, Fix, Refi, Rent?

It is true that some agents will not turn in offers and just say they have been denied in order to see if you will make a little higher offer. A higher offer means a Larger Commission for the Listing Agent. Its Unethical and can cost the Agent their license. Contact your local board of Realtors and ask to find out how to verify if an offer has been recieved by the Sellers.

Here in the Quad Cities the board of Realtors use a 7 page Purchase agreement and on the last page there are 2 separate lines for the Seller to sign. One for accepting and one for declining. This way there is written proof the offer was declined.

Your right to not give up when frustrated just keep getting offers out there. Try to get 50 offers out in one week and see what happens. There will be a variety of replies from your offers mocking decline, angry decline, polite decline, and an acceptance!

When you make your offers are you making them all in a written agreement to be presented to the seller? When you try to make 50 offers in one week have your agent make them all verbal to include the price and terms that will be in the agreement. Writing out 25 - 50 offers a week will be a painful task for your agent.

Good Luck and let everyone know your results of 50 offers in one week!

Investors i know have run into that situation also.
They realized that putting 20% down with conventional financing put them in the same race as most mainstream retail buyers.
How did they start getting an advantage?
They learned how to build relationships and garner trust with hard money lenders. (This took many many months to build trusting friendships). And started submitting REO offers as cash purchases with few if any contingencies in order to gain leverage when competing with other buyers who were offering closer to full asking price contingent upon their obtaining financing.
And sure enough, they started beating out other offers that were for MORE money but contingent upon obtaining financing.
Banks seem to love cash offers with easy fast closings.

I never offer on REOs that will go to an end buyer! They always need a lot of work. You have to know which REOs are an actual investment property. That is how we get them cheap, fix them up and then sell to the end buyer. We gain the value through the rehab. Has to be the right property in the right area. Even offering on "junkers" takes a lot of offers to get one. We make 15 to 18 offers a week and MAYBE get two a month!

Keep at it, at least you are getting out there and taking action, something is not working so don't keep doing the same thing!

Good Luck,
Michael Mangham
MD Home Acquisitions LLC

Quote: "It is true that some agents will not turn in offers and just say they have been denied in order to see if you will make a little higher offer. A higher offer means a Larger Commission for the Listing Agent. Its Unethical and can cost the Agent their license. Contact your local board of Realtors and ask to find out how to verify if an offer has been recieved by the Sellers.

Here in the Quad Cities the board of Realtors use a 7 page Purchase agreement and on the last page there are 2 separate lines for the Seller to sign. One for accepting and one for declining. This way there is written proof the offer was declined."

I have always wondered how a buyer knows that an offer was not presented. If I go to the touble of filling out a 9 page offer, along with all the addendems required by the seller, I am going to deliver it! In our contracts, if the seller does not respond by the response date, the offer is considered declined. When making "low ball" offers, this happens a lot. Sellers do not consider the offer worthy of a response.

What I do to show the buyer that the offer was delivered, is to copy them on the offer submission. I scan and email all offers to the listing agent. I copy the email to the buyer. I often forward the negative responses that I get also.

If your agent emails offers to the listing agent, ask them to send you a copy also.

I went through 15 real estate agents. Still searching. Just when I think I found the right one, something happens to prove me wrong. As soon as you find that RE Agent that can work WITH you, you will be good to go. Dont stop putting offers. There are still deals out there.

you're losing to buyers who close faster

While you're putting down 20% is great, if you're financing thats a 30-60 day wait compared to a cash buyer(s) who generally can close within 10 business days.

Offering at 75% of price should give you an advantage, but generally i know REO's normally need lots of work and aren't mortgageable, so that might be another knock against your offers.

I would recommend you keep doing what you're doing instead of throwing phantom offers and hoping they stick. You're on the right path.

Good luck to you

ask/demand for a denial/rejection letter from the lenders.

Elix correct as always-

REAgents WANT quick and easy deals not with a bunch of offers and contingencies or counter offers- remember, they get paid on commission and negotiating price down cuts into their pocket-much less the additional time.

Don't waste your energy on those 25 deals a week. Offer only on deals you have done due diligence on

If you happen to find a realtor that is willing to present 25+ offers a week, realistically she/he isn't doing much work/clients that they would actually do it without letting you know the chances of those deals closing.

Stick to the path you're going, but understand the problem of financing you're up against.

True Story!

I had an Agent in November of 2008 that mainly dealt with listing REO for a few local banks. She was also an Investor that over 28 years built up to a portfolio of 50 Units. Our first meeting was great and it seemed as if she would be great fit. She was open minded, skilled, ethical, and enthusiastic about doing Assignment of Contracts.

The next week I put out 48 offers on Monday. They were not full 7 Page Written Offers instead they were Letters of Intent to purchase Real Estate. I know that Agents will be very frustrated by Submiting Full Written Contracts, so I prepared all of the Letters via Microsoft Word emailed them to my agent and she sent them to the listing agents.

The Results? Interesting.

Many no's, 2 Counters, 1 Accepted. Even more interesting is the timeline of events. There were many E-mail replies that even though the offer was rejected there was a very positive response from the listing Agent to the idea of using a "Letter of Intent to Purchase" to save time compared to writing out the full contract every time. There were also a few negative responses to the low ball offers from the Sellers themselves, the worst was "how dare I prey on those who are in an unfortunate situation to sell, unlike us we do not and WILL not sell for such a ridiculous price, you should be ashamed!", one agent even simply replied "Investors, Ba-humbug!"

Thursday 9AM Phone call from Agent. She explained how she did not like the negative feedback received from the low ball offers. She believed it was best for us to part ways, as she was worried of her reputation. I understood and said thank you for your time.

Thursday 11AM Phone Call from agent. She explained how one offer was accepted and was now more willing to continue this experiment if this deal went all the way to closing.

Long story Short the property had settled to the point of a fun house and was a haven of Mold including squatters. So we ended up backing out of the deal. $70K FMV, $40K+ Rehab, Accepted offer was $20K, needed to buy for $5K, could not negotiate lower price.

We're all going to have to go through a few agents before we find one that we work best with, I'm still looking myself! But don't wait for an Agent before you start making offers!

When I did my Duplex Deal I did not have an Agent for myself, I called the Listing Agent and went forward from there. It was a Dual Agency deal and things got very complicated by the sellers. Property was listed at $24K, Accepted $20K, renegotiated to $15,200 after inspections.

When I made the offer on this property it was originally a verbal over the phone offer with the sellers directly. I saw the property physically with the sellers 5 times and never met the agent until the closing.

Anything is possible, just gotta figure it out one idea at time.

Hope you all don't mind the mini books I write for each post!

Thanks for all the great advice i will definitely try some of those suggestions. As far as only making so few offers in 18 months you have to keep in mind i work 40 + hours a week in another field lol. But i retire in 18 months so im anxious about that.

Ty for your advice i only have one contingency in my offers and thats my approval of the home inspection. And my mortgage broker can have my mortgage in 30 days. And all of my offers are within 25 percent of the asking price. So thats been my method so far. Im starting to think more and more about wholesaling fsbos. We will see.

In my original post i said i was offering 25% of the asking price but i meant 75% of the asking price.