Streamlining your Offer System... Need Suggestons

I'd like to know HOW you can put these offers in via email/phone?
What do you send them? Can anyone help us out here? I'd love to send offers this way...THANKS!

Dawn

This is exactly what has been holding me back and I have been trying to get a detailed explaination of the wording in an email offer.On this website I think everything is covered except that.As you can see 3 of us that have been here for awhile have the same question and I know it is a simple answer, but when you just don't have the answer it can be frustrating.
Can someone give a good detailed wording you use and explanation of what Kimmy just wrote.
Thanks

Okay, my agent just called and told me that she phoned 4 of the listing agents to get information on the properties I want to put offers on. All 4 of them told her that offers were put in at $X, and that my offer was way too low to even compete with the other offers (they wouldn't give exact amounts). In addition, 2 of the homes had a couple offers already on the table. One of the houses, the listing agent told her the house is covered in mold and that he thinks the bank is nuts for requiring such a high price. Is this a good strategy for my agent? I just feel like I'm beating my head against the wall because the other agents are poo-pooing my offers before I can even get them in! Is this normal?

I'm having the same issue, over and over again. I guess these strategies work if there aren't competing offers. Is it because others are seeing the value in real estate investing or are we being snowballed by agents/sellers/banks because they don't want to let it go???

Snowballed! That is exactly how I feel right now.

I know in San Diego that this strategy is only working on homes that have been on the market a long time because people are buying at FMV or a little lower.

Offers can be verbal. Your agent doesn't have to put every offer in writing. The more offers you put out there, the better chances your offers getting accepted. Use Matt as an example, he started putting offers in writings, but when he started doing the 25-1 system, most of them have been verbal. The main thing though is once you get your offer accepted, get the documents and lock it up.

My last REO that i close on it last week was a verbal offer and my attorney locked it up with the seller. If you do it through email, get your offer accepted and then fax the agents or the seller the documents to lock up the deal. I hope that helps, but we should be vegilant and eliminate excuses from achieving our goals.

Lloyd

I am a Realtor in Phoenix. I have some buyers wanting to take advantage of the first time buyer tax program. I am finding that homes that are 80% of market value or less are being bought up quickly. We are making offers at 70% to 80% of value, and are not competitive. The homes that require substantial rehab were once reserved for investors. With 203K plan, anyone can purchase a home requiring rehab. I have found that when the banks are reducing their list price, they are generating a lot of interest. I want to be the only offer in front of the seller. I have had some success, by not waiting for banks to lower their list price. I can eliminate some of the competition by making my low offers before the bank lowers the price. If the listing is too new, this does not work. I play a guessing game of making those offers just before the bank lowers their listing price. I find that banks tend to lower their price at the end of the month.

Good Luck, Al

I'm looking at one now that dropped another $7k right after I found the listing. I'm meeting with a contractor to get repair estimates to help me determine my offer price. They already refused a low offer, but I don't know how much it was. Hopefully, I hit the right button at the right time with my offer.

Should I wait until the end of the month or the beginning of next month to make an offer? Thanks for the info Al.

We went in yesterday to put an offer on a house that had been on the market for over a year, and THAT DAY the bank accepted another offer. It really is frustrating!! We want to be putting in lots of offers, but we have the same issue, with the paperwork for each offer taking a long time to fill out. How do you make a verbal offer? Just ask your realtor to call the listing agent or bank and make our offer? Another problem with some of the things I'm reading here is, 70% FMV is not going to work for us! We are trying to assign contracts to wholesalers for our first couple of deals, and they ALL want 60% FMV. Obviously, we have to make our offers below that number. Are we the only ones in this boat? ?

I just got slapped with the same reality on my offers. My agent called the "big guns" in our area today. These are the agents that are listing all the reos. They were very honest and said investors with cash are coming in and offering 90% of the listing price. They're buying them up a dozen at a time. I am assuming they're buying, holding and renting or lease/option because you can't wholesale at 90% of the listing. This tells me two things... one wholesaling may not be the niche in my area or I have to look at the deals from a different perspective. I'm thinking that I would have to find houses that are already discounted 10-15% off FMV and then offer only 10-15% off the listing price. These would have to be houses with minimal repairs and good rental cash flow. This would give me 70c on the dollar. My fee would be smaller, but it's still doable. I am sure that if there was $20k + in equity after repairs, investors would be happy. Another option I have is taking Northwest's approach via HML and then refi. What do you all think?

Amazing how alot of us r experiencing the same problems! Kim is in southern CA and I am in the north (east bay). I am working with a realtor that says that I would be wasting my time(and hers) to offer 55% of the bank's asking price (REOs). She says that most are selling at either their asking price (or higher based on bidding wars) and some possibly at a 10% discount.

Kim, the CA market has dropped so much because housing prices grew way too fast over the last 6 years or so (houses doubling in price every 3 years.....RIDICULOUS.......there had to be a major bubble coming). I think that states such as ours, AZ, NV and FL are states where the houses are being priced by banks at 50% (if not lower) than the peak these prices were at say 2 years ago (I know of many homes that were worth $900K and are now priced at $450K). It is very difficult to ask the bank to halve that to $225K (50% of asking price) because the banks have already taken these factors into account.

Bottom line, unless we will be holding the props ourselves as landlords for lease/options.......we have to find investors that are willing to be the buy and hold guys letting them know that the best I can possibly do is get the banks to lower their prices by maybe another 10% to 20% off. We have to find investors that are SAVVY and understand that they are getting a TERIFFIC deal because the banks are pricing these houses at 1/2 off from their peak of 2 years ago. Logically....how much lower can the banks really go???

It all depends on where you live. I spoke to an investor the other day that told me that this is the only mtime that he has ever seen in the past 35 years where you can buy a prop in CA and CASH FLOW! he said this is unprecedented in CA.

Based on this, I am LISTENING to my realtor by putting in bids closer to 75% so I have a little wiggle room. I have found SAVVY investors that look at the marketplace as I discussed above. They are willing to buy at 80 to 85% of FMV because they also know that these houses are priced correctly.

Therefore, the way you make money is being a "finder" of these homes. My investors (after negotiating with them) are willing to pay me 3.5% of the puchase price). So on $450K, I make $15,750. Not too shabby! And don't have the headache of playing back and forth games with the banks by making low ball offers and then they counter, then I counter and so on.........

This is my 4 cents (long emails = 2 cents x 2

I am open to other suggestions but this is how I see the market in the area where I live. Anybody else in the east bay, pls chime in with your thoughts.

Neil

I am getting very depressed reading this post and the replies. I think I will go find a TV somewhere and watch CNN so I don't have to listen to as much negativity!

Listen, I have people tell me all the time that there are no good deals in my area, they also tell me that there arent't any deals that will cashflow. I don't know what to tell them because if they don't think that finding a house at 50% off is possible then it's not for them, plain and simple.

When I created the 25:1 system I didn't say talk to 3 realtors and go with the best one. I didn't say put in 4 offers and if one doesn't get accepted quit putting in offers. I didn't say if the offer takes a long time to fill out then it isn't worth doing. And I definately didn't say only focus on foreclosures or REO's.

The steps are very, very simple. Just do EXACTLY the steps I suggest and DO NOT DEVIATE ONE INCH. I just don't get it.

The bottom line is this. Stop getting hung up on the small stuff.

Get it done!

As always, you are absolutely right. I guess that I just have to look for other props such as FSBOs and not just focus on REOs. My realtor wrote back that she will NOT put in offers at 50% because it would damage her reputation and just waste both of our time. I don't take it personally and do respect her greatly (she does know her stuff).

Just have to seek out a new realtor that is willing to make offers at what I want to make them at (I am also making contact with a banker so this may work better working directly with him)or as I said look at other types of props.

Thanks for the encouragment!

Neil

I agree with you that deals can be found. However, you are VERY blessed that you found a realtor willing to do the dirty work for you. Star is one of a kind. What Neil just said about his realtor is exactly the experience I have had with the last 8 realtors I have dealt with not including my realtor the "friend." They get gung ho for the first offer or two, but after they receive the negative reactions from the other realtors, they immediately quit. They can't see long term. I tried to put 16 offers in yesterday AND EVERY SINGLE OFFER came back with, "Your client is nuts! I have X offers at 90% - 95% of the listing price." Now the agent is doubting the system. I'm working the 25:1 system. I just typed up your agent letter and I am posting it on CL, Backpage, etc. You've been doing this awhile, so you have your system down. For a new person trying to get all this stuff flowing and working like a well oiled machine can be a little overwhelming, especially when you have agents that don't get it! You and Star are like one person. Many of us have not found that agent yet. The Chapter 6 title to Dean's new book says, "THE PERFECT REAL ESTATE AGENT = BIG PROFITS!" I think the problem is that none of us have found the perfect agent. So, I guess I answered my own question. In order to be streamlined you need the PERFECT AGENT! I don't have the perfect agent yet!

Ladies and gents. The deals are out there. Member the banks put themsleves in the jam they are in. That is afeecting the rest of the nation. Due to greed. Well today for example I witnessed a written offer for a home for 12k on a house that was selling for 69k. When the house is in top shape. it can sell for 145K. They plan to put 45k into it. The house needs alot of work. Last week an investor I will be working with showed contracts of homes that he closed on each for 15k. All these home are being worked on now. My realotr bought a house for 20k that he is having being worked on now. I met with a FSBO last week. His home is worth 258K.Needs no work as far as I can see. The house is new. Built in 1997. He wants to sell quickly, is what he told me, but is trying to get 275k for the house. Which will not happen.He said he had about a month to sell. He is id default. So Iam going to make a verbal offer in about another week to him. I am checking to see if the house happen to sell every other day. I will call him and simply say listen MR. So and So, I am going to maka an offer on your home and let me know what you think. The worst he can say is no. If he says no. I will wait 2 more weeks, call him backand see if he will accept my offer then. Thats all. I told him before I am an investor so I can not pay 275k for your house. I was honest. So I will be honest with my offer.
Kingjuss,

For example I went down to my treasures office to take a look at the list of owners with due taxes. I wrote down a few addresses.I will do some research, then I will start seeking out the owners or just see if I can bye it over the counter. In my county or state, there is no redemption period. These homes on hte list now have till June to pay back taxes or they will sold at the next tax sales in august. So me knowing this, Iwill wait till the last minute and see if I can bye over the counter or arrange something with the homeowners. Some people owe taxes from 500-100k. Some people will pay the taxes before the dead line to pay.So I will check the list the 3rd week of may to see who payed there taxes and have cleared and woh is still delinquent. See what I can do. Lots of people just don't want the property anymore. Have property is landlocked with ToysRus behind the house. They owe almost 3k in taxes. The house has been vacant for years and i s ran down. I am thinking the ToysRUs would maybe want the land that house sits on. So I want to see if I can pay the taxes to tear down the house to sell the land. So my mind is working peeps dont get hung upon one way of getting property. Utilize all avenues available. Just wonna keep my peeps motivated. I dont even allow negative anything around me. Just the other night I got mad at my girlfriend for having the news on, cause all I hear is negativity. She said whats the matter with me and just said Idon't want to hear negativity. I have blocked all bad vibes, bad news,etc out. Don't want to hear it because naturally it brings you down. You guys need to not listen to the negativity your realtors are talking to you. Its killing your motivation beecause you start to believe it. They don't want to grow is how I see it. There are in routine. We dont operate that way so forgive them for being closed minded and move on. Opportunity is there for those of us who want it and are willing to go after it. They say nothing worth getting is easy. So dont be quitters.All the investoras I have met have told me this personally. This business is rough starting out so dont quit because all your hard work will soon pay off big time. They said you can make alot of money if you are willing to dig in because noone is gonna hand you a deal or anything for that matter.
Kingjuss,

Boys and girls where not out of the woods yet when it comes down
to are economy,Who ever is paying top dollar right now may be jumping
the gun alittle to early.I heared a depression is actually two recessions
back 2 back. Is it possible to summit offers to banks just like you
can use bandit signs you basically use your template and fill in the
information? RE agents are a dime a dozen if you are trying to make
friend's!(GO TO THE BINGO HALL)

Randy
2birds-------------1stone
MAKE YOUR ACTIONS COUNT!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Star is good but there are more out there like her. I find them almost every week. I know it will be hard to find a good agent. It was hard for me to convince Star to work with me. She didn't need me. I Convinced her to work with me. That is the point I am trying to make. I made her believe in me because I believed in myself. I had a "can do" attitude. I never felt sorry for myself or got negative. When somebody didn't want to work with me I really thought they were crazy.

Cbrpower says move around do not stay in one place!Always keep moving
in your offers just because you make an offer does not mean it is over!
If you really want to be a REI you have to make your own rules, My number
one rule is i do not want any fat cats(except buyers)around me, I want
people hungry just like i am! My RE agent will be hungry just like me
(Fresh out of school).

Randy