OfflineOr, in REI parlance, what comes first, your offer or your buyer? If you are just starting to build your buyer's list and you come across some good-deal properties, do you go ahead and make the offer, try to lock them up, even before you have your investors/buyers in place? And do banks usually honor exit-clause contingencies that allow you to recoup your earnest money if you do not close the deal because you could not get an interested buyer?
Barbara
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There are those that say deal first and you'll find a buyer. Some say build buyers list first. You'll have to make that decision.
I personally prefer buyers first, establish their criteria and go find it. I feel buyers give you focus and direction. Dean says it, Matt says it. I prefer not to reinvent the wheel. Do as they have done (In my mind means = EXACTLY to the T, no questions no deviations) and you can have what they have.
Once you have a strong pocket of buyers and large network, when something comes across that wasn't specifically what you were after but would be bonkers to pass on....you proceed because you know you can do something with it.
For your contingencies. I use only a 14 day inspection when dealing with banks. If I don't have a buyer under contract and earnest collected I pull the plug before contingency expires. But I've only had to back out on one.
God Bless,
Jen
I can't remember who was on the conference call with Dean, But it was only about 3-4 months ago. The guest was talking about being the before, during and after "GUY". It sounded like he was having Buyers first (mostly) and having the situation covered Before,During and After. I am still new and look at my buyers list and try to be able to have properties ready and match with my new buyers. I think do it both ways. Be ready at ALL times!!!!!!
http://BruceThomas.bookmentioned.com
Bruce
Thanks to both of you for your input!
Barbara
Really appreciate your detailed, step-by-step reply! Now my question to you is: At what point did you learn that there was no water heater? During the 7-day inspection period while actually having an inspection conducted? It seems from your response that you were still negotiating the offer when you discovered somehow that the property had a missing water heater.
Barbara
I love un-loanable properties. These are the ones cash buyers/investors love too! Just got to do what you said you were going to do. Follow up and re submit your offer.
It is amazing what you learn when you start making offers. What the REAL ARV is!!( what cash buyers will pay) Also, where did you come up with a $12,000 fee? You must justify your percentage when dealing with most investors. Unless you get it so dirt cheap that their ROI is still over 15% with your fee.
Keep it up! You are on the way now!!
No offer, no way to make money in REI!!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
HA! Great Super Bonus! And great advice, too. Thank you.
Barbara