Real Estate in Colorado

Really funny if only it wasn't a serious matter for you.

Your offers are to low for this market otherwise you should have had a couple of accepted offers. The agent is correct! I do this in Colorado and have had 10 closings in the last 90 days. My offers are higher than they were 90 days ago! This market has low inventory and high demand. Low ball offers that worked a year ago are rejected now.
Also, what I see alot with new investors is they offer on properties that will go to owner/occupants. Owner/occupants will ALWAYS pay more than investors. SO you must offer on properties that owner/occupants don't want. The UGLY house in a decent or redeveloping area. AND/OR have a HUGE marketing campaign aimed at UNLISTED, MOTIVATED SELLERS.
Finally, you should fill out you bio on your homepage. What part of Colorado?

Michael

Michael I know that you do this in Colorado, but you can probably afford to. We cannot at this time afford to do anything but Wholesale. Most of the buyers we've found want a minimum of 30K-40K profit after all is said and done and we cannot find homes with that much in them. (With the exception of "meth" houses, and NO ONE wants those)
We live in Loveland and have put offers in Loveland, Ft. Collins, Greeley, Evans, Aurora, Westminster and Thornton.
I've been staring at this cursor for 30 minutes now, I really don't know what else to say.
If we offer more on these properties we won't be able to Wholesale them. I really do not understand the trick here.

Why are you rushing this. It takes time to see results.

Do you have a specific reason to be impatient?

Those ten deals I mentioned above were ALL wholesales. I did not spend one penny of my own money. Not one red cent!! I made more $$$ in that 90 day period than what the average household income is in the U.S. All in Colorado!

If what you are doing is not working you must change something.

Good luck,
Michael

P.S. Filling out you bio page would be a good idea.

Perhaps you can help him more by providing some numbers. He mentions investors wanting minimum of 30K-40K profit, is that realistic in CO or is there another set of numbers he can work with?

ALL of my REAL cash investor buyers work off percentages. Making that 30k on a house that sells for $350,000 on the back end is way different than making that 30k on a $175,000 house.

They like a 8% to 15% ROI. To say I want to make $30k to $40k should be qualified by the price range of house I am looking to buy. How much rehab/remodel I am willing to do, etc etc etc. A blanket statement of I need to make X amount is usually made by non-closers or the new investor does not have a clear understanding of what his buyer wants.

Making 30k to 40k on a $400,000 house is reasonable but is not on a $150,000 house. Do home runs happen every now and then and an investor sees a 30% ROI. Yes, but active investors know that only comes along every once in a while. Meanwhile they operate in the real world of the current market. Here it is LOW inventory and HIGH demand. That means SMALLER spreads PERIOD.

Hope that helps,
Michael

Yes, actually.
I am juggling $40K on credit cards and would love to pay this down.
If we were in Alabama we wouldnt be having this problem because we could pick up a property for a lot less money and we might be able to come up with $20K for purchase price and reno. But we're not. The homes in Colorado are more like $185K and up.
We were initially told we needed no money to purchase, but, a hard lender will ask us to have 15-25% of our own money. (PS. We spent that on tuition)

Time is of the essence.

Okay, so here is a scenario we are working on.
We have an REO that was listed at 185K.
Comps in the area are $185 - 200K
We can pick it up for $165K
We've calculated repair at $5K
The Bank will not let us assign the contract, trying to find out if we can do a double close.
SF 3/2 located in Loveland, co

Are there buyers out there that would want this?

Great information. Thanks for the input.

Michael is definitely right and he is probably the top wholesaler in Colorado.
I've put in offers way below market value for a month now and my realtors got frustrated
And said I was offering too low and couldn't understand how I could make the numbers work.
So I looked at what Michael was putting properties under contract for from the emails he sends me
With deals he is currently wholesaling, and realized I was offering way too little. With the market going up
We have to remember that these buyers are also more emotional with buying right now.

On the deal in Loveland. You could offer in the name of a LLC or Trust and sell the entity. No need for a double close.

It would be a good idea to fill out your bio page!

Michael

Yes Michael, that actually helps a great deal. It changed the way we think and we appreciate the advice and have already implemented it.
Thank You so much!

I am sorry you had someone on the advisory line tell you they did not have time for you. It does not sound like any of the trainers I know, but it must have been bad for you.

You need to have a trainer review how you are calculating offers. It is pretty obvious your offers are too low. If you are not making offers correctly, you will never get anything accepted. You also need to call the advisory line REGULARLY. We are here to help.

Don't stew. Get the help you need and you will find success.

Johncarolepeck,

Boy can we relate to your situation! We signed up last November; didn't get our first deal done until late July. We put the cost of the packages on credit cards. It's been all we can do to keep our heads out of the water. We work with PMI, and have gotten a lot of help from them. I'd encourage you to keep calling. They have a broad spectrum of experience to pull from.

We are still only able to do wholesale deals. The primary reason for that is we are in the San Francisco bay area of CA. I suspect that the CA and CO markets are similar from all the posts I've seen in the past few months. There are deals out here, but you have to look for them.

We have found all of our deals through a direct mail campaign. We bought 3,000 names of out of state owners from a group of zip codes in the greater Sacramento area. One of my partners still has a regular job, and he's paid for the first 5 campaigns. The last two were paid from the LLC. These mailings are running about $1,500 a month. On average we a spending $.50 per name that we mail to. BUT, all four of our deals have come from that one list of names. Our deals have brought us just under $20,000 since July.

We didn't figure out the direct mail ins and outs ourselves. One of the members of our local REI Club offered us all the steps he uses in direct mail, every little detail, for the price of beer and wings.

We have tried to use all of the tools we've been given, the ones that came with our education investment, people we've networked with locally, and free podcasts. In our kind of market, I felt I needed to talk to people working in CA because it is a different market. But who could I trust? Easy answer - the DG family! As I read posts, I looked at the authors profile. If there was an indication that the author was in CA I sent them a PM. (Michael, is right build your profile; someone may be looking for you. ;6)). We have asked questions, gotten pats on the back, and pushes forward from these brilliant investors.

The hardest part is believing you can be successful, making the mindset change, and ignoring the naysayers. The system will work everywhere, including CA and CO. We are sure you can do it! If we can help, let us know.

Roxie, Joe, and Josh