Offers Coming In At or Above FMV - What to do!

Thank you Anita! We will MOST DEFINITELY be using your advice in making our offers. Thanks for sharing your experience and knowledge with us!!

Sounds like a great idea.
I'm turning in 12 offers today.Signing papers at 3:30pm with my Realtor.
Does it matter which to use? and/or assigns - and/or assignee
Thanks

Good luck with your offers, Jason! We're signing papers at 1:30 for 4 offers. YOU ROCK with your 12 offers! We've got to step up our offers, for sure! Our original goal was 5 offers per week, but I'm thinking we need to at least double that. Keep us updated on how many get accepted!

Thats what I like to see - action @ work...lol.

5H its nicee to meet you and Jason, you are on the right track - JUST DO IT!

No loss no gain. Remember to contact me it you guys need help.

Anita, where do you put and/or assignee? Is it on the first line of the contract, behind name of purchaser, or do you slip it in as a clause in the addendum? Thank you for the info. We are really looking to you as an example of how we can become successful in So CA, too!

5HEnterprises wrote:

Anita, where do you put and/or assignee? Is it on the first line of the contract, behind name of purchaser, or do you slip it in as a clause in the addendum? Thank you for the info. We are really looking to you as an example of how we can become successful in So CA, too!

You put it EVERYWHERE your name appears and when you sign you sign it your name/and or assigns (assignees if you like that one) as for the inital spots, just put yours. If and/or assigns is not allowed by the bank write it in as an addendum and subject to...

Thank you for the info, Anita! We have been just putting the and/or assigns in the addendum (buyer reserves the right to assign contract to partner...), thinking that maybe we could sneak it past the banks if they weren't paying attention! Are we going to be ok with just that, or may we be stuck with the property if our offers are accepted? I think with our subsequent offers we will just follow your lead and put and/or assigns EVERYWHERE our name is.

Another question for you: What types of homes do you look for? Are you looking for properties that need A LOT of work, and therefore your previously mentioned strategy of attaching a list of repairs would be extremely relevant? Or do you focus on properties that have been on the market for a long time, regardless of repairs needed? Or properties that could be cash-flowed with very little work? I guess what we are asking is, could you give us an example of a typical property that you would target???

Sorry for soooo many questions! We thank you for your wisdom and willingness to share it.

hi, i am now ready to make an offer, do i make my offer with the agreement to purchase form, or is there another form i should be using, thanks

I makes offers on anything that catches my eye and that I think I can move. I set my criteria so that I know exactly hat I am looking for and it works well from there.

For example: 4 br
2+ bths
1800 sq/ft +
6000 sq/ft Lot +
Single Story
Garage(s)

You see I just narrowed my dsearches down significantly and I still have a tremendous amount to work with.

Check you PM I already responded to this one there.

Have a wonderful day and good buying!

Anita,
I have enjoyed reading and learning from your post. I have not yet put any offrs in as I am still reading the first book, (haven't gotten to the second one yet). You sound very knowledgeable. How long have you been investing?
Kat

...I see some REI's just say "make the offers" (w/ contingencies - without viewing the property) These strategies clearly isn't a match for each other.

1/ Do you actually view all the properties before putting in an offer?
2/ Do you take into account that the FMV may decrease in your assessment/offer?
3/ If FMV is 200K and REO is selling at 120K. Do you offer 40-60% of 120K?

1. NO - I do not actually view all of the properties but my realtor does
2. Yes I do take the decereased FMV into account. That is when I amend my offer
to a lower value
3. yes I still make my offer at 40-60% but in that case with a list attached to
justtify

lol....1 year on april 7th.

We think this strategy makes a lot of sense. So yesterday Dominic made a list of repairs on 2 properties (he just walked around and saw exterior problems, didn't go inside the houses) and attached them to our 50% below FMV offers. Today, the listing agent on one of the houses called our realtor and accused her and/or us of vandalizing the property and CAUSING those needed repairs. He threatened to take our realtor to the state board and flat out said he told the bank to refuse our offer. He also made a huge stink about us including a list of repairs with the offer. He said, "THIS IS NOT HOW IT'S DONE. I AM OFFENDED THAT YOU AND YOUR CLIENTS DID THIS!!" Our realtor said she knows without a doubt that we would not vandalize a property to get a low offer accepted, but she is now afraid and does not want us to submit repairs with offers, unless a counter-offer is made.

Has anything like this ever happened to you, Anita? Or to anyone else???? Or did we just hit the jackpot with a lunatic realtor who is either trying to intimidate us and our realtor, or is just plain crazy?!? (Probably yes to both! )

Do you think we are better off not including the list of repairs with our first offer? We are soooo bummed, because we REALLY want to emulate Anita and her strategies. We are so impressed with how much success you have had (in not even a year, yet!! ) and we want to be successful, too! Since you are in So. CA we were hoping to be able to borrow your strategies, but now this wrench has been thrown. We may have to look for a new realtor, who is not so easily intimidated.

We welcome ANY AND ALL advice anyone has. Thanks!!!

I have two comments to make about your situation, and this is just my opinion, but:

1) Yes, I think you did hit the jackpot with a loonie realtor, who probably is blowing smoke about reporting your realtor to the state board, because he's just too lazy to want to submit your lowball offer to the seller. What proof does he have that you even touched the property in a malicious manner. Since when was it unlawful to note exterior repairs, interior repairs, etc on a property, and submit them as validation of your low offer

2) Yes, I think you may have a soft realtor working for you, who can't stand up for himself. If he can't see the lunacy of the selling realtor's threats, and help you to move on to the next property, while still using the same techniques you had hoped to apply, then fire him, and find a realtor who will work with you. There are plenty of realtors out there, and unfortunately the large majority of them are either lazy, incompetent, or just plain crazy (i.e. example #1). Take your business to someone who is on your side.

Good luck! Keep pressing forward.

Paul

Thank you, Paul. You have validated what we were thinking. If our realtor isn't standing up for herself in this instance, what are the chances she'll stand behind us and our offers? We really need someone who will be on our side, as you suggested. This was a bump in the road for us, but it's not going to stop us! Thanks for the support and kind words!!
Dominic and Kim

I have a property that decreased in value by 55% in one year. I don't know what the bank is asking, but I know for a fact, they are going to have problems getting rid of it. How much do you think I should offer?

If you PM me, I could give you more detail. I'd love to get some one on one guidance from someone with experience. (one year can mean a life time if you've experienced enough)

I agree with Paul 1000000%

The other other realtor is full of crap and they know it. You see they were suppose to do a walk thru or drive by inspection when the bank passed the property to them to sell. Which he probably did not. Your list only will confirm this to the bank. Then by law HE CANNOT refuse to submit your offer. He has to submitt every offer they get on it and your realtor also knows this. She sounds like she has no back bone. So she should either straighten it up or dump her for a real real estate agent with investor experience. I think you didi a great job with your first hit so keep plowing on and let me know how it works

We were thinking the same thing. You are in our general area. You are succesful and we want to emulate exactly what you are doing. We are a little gun shy about walking on these properties without our realtor and yet we don't want her to have to show us 10 properties a week. How do you work things with your realtor? It was suggested by the academy to keep our realtors work to a minimum(sending comps, submitting offers). Thanks for suggestions.

I do all the property inspections myself. but you really need to talk with your realtor or either get another one. I have a great realtor so I have no problemss like this nor have I had any but keep doing what you are doing and if that property was one for which you are really wanting, stick it to the other realtor and push ahead. Contact the bank directly and let them know whats going on.

Thanks Anita! Great idea! We'll keep you updated.

When making these offers what amount of money are you using for a deposit (earnest money) on each offer.
Thanks
Jester158

Anita's told us she's using a copy of a $500 check.

We have a 5oo dollar check without a date on file with our realtor. She makes a copy and writes in a current date with each offer.

I keep hearing of people not having to put an earnest deposit down even when the contract is accepted. How is that possible? I would love to be able to do that but the bank seems to always want an earnest after an excepted contract.

Thanks,
Niki

Well, we fired our realtor. She agreed that she is not a good fit for us. She said that she is not willing to stand behind our offers, she is not (in her words) "greedy enough." I guess she thinks making 50% offers on bank-owned properties is greedy. Whatever. Tomorrow we start the process of finding a new realtor who will have a backbone and be in our corner, not only submitting our offers, but defending them. Any suggestions on how to attain one of these?!?

Hi, I'm a licensed investor & realtor located in Socal (I'm in Temecula, which is Riverside county, not far from Orange County). I specialize in my local area which has many cash flow properties and cheap REO's.

I can work with you on as many as offer as it takes for you to find the right deal!

Here's my website: www.hemetpropertyventures.com

If you are interested in properties near where I am, give me a call: 650-291-4436.

It seems the more we all go through with agents and getting closer to a deal, we tend to get more aggressive ourselfs as Investors.I remember a couple of weeks ago I was affraid to ask my Realtor to put in formal offers for me and now I tell her I need these 15 offers out this week.We are all growing and it's fun to watch.

Here's the letter I got from the DGsite. if you've never seen it, here it is:

REAL ESTATE INVESTOR LOOKING FOR PROPERTIES
Hi my name is xxxxx xxxx and I am a investor in the local area. Due to the current economic conditions I have decided to ramp up my existing operations. I not only represent myself but I also have several investors in and out of the area that I help find, rehab, rent out, and manage properties.Regardless of the stategy I use on each property I need to be very aggresive on the price I pay for the property to use an assignment of contract and other strategies that I have learned, Especially in the current market. I have not chosen a real estate agent to represent me yet. The agent that I choose can not be affraid to offend other agents with low offers. The agent I choose also will have to be available at all times. I use several stategies to buy and sell properties quickly including making verbal offers when permitted. I will also look at a lot of properties and buy only a few. So an aggresive work schedule will be required. The upside for the agent that gets accepted will be lots of commission. We will close on properties every month. I will pull in the agent on forsale by owner deals. At times I will write additional commision into the contract when we ramp up to full speed. All that aside, I am a professional and I expect to work with a professional. I want to make money and I want the agent to make money. Here are the type of properties I am looking to buy and/or assign.

Single family homes 3-4 berooms, 1-2 baths at least 1000 sq. feet.
No mobile homes at this time
No home built before 1950
No vacant ground
Located in zip codes xxxxxx xxxxxx xxxxxx
only in low crime neighborhoods

If you have properties that fit this description or would like to represent me please call me at XXX-XXXX or email XXXXXXXX

Thanks for your time

XXXXX XXXXXX

You guys know how I feel about finding the perfect realtor - so keep yor head up and check out some of the resources you have on here for finding a realtor. There are plentyof them on here