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Author Topic: 300+ REO & SS offers and not one accepted??  (Read 2524 times)

Offline SFL_RE_Guy

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300+ REO & SS offers and not one accepted??
« on: July 14, 2011, 09:14:15 am »
Long story short, got laid off 6 months ago, have made 300+ offers at around 70%-75% of list or FMV, and not one offer accepted. What am I doing wrong? Should I give up on listed properties and start doing yellow letters and bandit signs?

Offline champstar2727

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Re: 300+ REO & SS offers and not one accepted??
« Reply #1 on: July 14, 2011, 11:46:26 am »
DO ALL THREE.
For example.We make at least 20 MLS offers a week + 100 bandit signs per week + over 100 mail outs a week. The main object is to get the phone ringing, and keep it ringing.
« Last Edit: July 14, 2011, 02:06:31 pm by champstar2727 »

Offline nsu1997

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Re: 300+ REO & SS offers and not one accepted??
« Reply #2 on: July 15, 2011, 12:31:17 am »
Long story short, got laid off 6 months ago, have made 300+ offers at around 70%-75% of list or FMV, and not one offer accepted. What am I doing wrong? Should I give up on listed properties and start doing yellow letters and bandit signs?

There are many other variables here that we don't know.

What are you offering for EMD?

What kind of condition are the houses in?

What are you using for proof of funds?

What kind of followup system are you using, if any? For example the bank may have rejected your $50k offer back in April because they thought they could get their $70k asking price...fast fwd to July and now they've lowered the price every month, now it's down to $50k...they're not gonna go back through their previous offers and call you (I don't know why they don't do that) so you should have a way to follow up on the status of pricing from month to month.

Offline SFL_RE_Guy

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Re: 300+ REO & SS offers and not one accepted??
« Reply #3 on: July 20, 2011, 02:50:26 pm »
I have $2000 with a title company and am using a certified Escrow letter. I have a $200,000 line of credit, and decent amount of money in the bank that I use as POF. Problem is here in south florida all the REOs are getting 10 offers per listing. Even if the deal falls through, there are 10 offers right back in. Some of them are selling for over list.

The houses are anywhere from complete wrecks to really nice houses $20k to $200k.

Champ, how often do you get deals? Have you got in any trouble with your bandit signs?

Offline nsu1997

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Re: 300+ REO & SS offers and not one accepted??
« Reply #4 on: July 20, 2011, 03:22:11 pm »
That's the problem right there then...investors are all over the REOs where you live. The word is out that FL is on clearance and there are probably lots of out-of-state & international investors swooping in screwing everything up.

That's the general problem with any listed property; the whole world knows it's for sale, therefore it's tougher to get them cheap enough. With that in mind, if I were you I'd shift focus to motivated private sellers. Inheriteds, absentee owners, driving-for-dollars, & pre-NOD just to name a few.

If wholesaling is your only exit strategy you'll need houses with equity, so when you buy your list narrow it down to deed dates before like 1999/2000. Better chance of having equity.

Offline Gold River

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Re: 300+ REO & SS offers and not one accepted??
« Reply #5 on: July 22, 2011, 05:49:34 am »
Hi,

    Out here in the great wild west of Arizona and Nevada it seems like real estate agents in all there wisdom have been presented offers (Which by law they always present in a timely manner? Hmm) but encourage there bank (Lender) client to wait because there sure a better deal will come along which seems to come from the listing agents own network.

It's not necessarily a better offer, may be just $50 or $100 dollars more, but the difference is the listing agent is representing the selling bank (Lenders) listing but low and behold there is someone interested who wrote there contract through the listing agent who is now representing the buyer and of course the seller!

So on a nice little $100k contract instead of this agent making 2% or 2.5% ($2000 to $2500) the agent is lined up for a nice $5k commission. I have seen deals here sit with listing agent saying "Oh Yea, the banks looking at it very closely and they should make a decision in a few weeks only to find out the agent ends up writing a contract through their own network.

Now I am sure that most of our real estate agents here would say "We would never do that" but I think there are an awful lot of agents encouraging there sellers to "Wait a few more weeks before you make a decision, I just know someone is going to come along with a better offer" and then low and behold "It's a miracle, Lord" and an offer with agent representing both parties appears for $50 dollars more than the offer 3 weeks before.

"Mr. Bank (Lender) this is absolutely the very best offer your going to get on this property now that 3 weeks passed and this is the best offer you got, I recommend you except this offer immediately as it's the best your going to get"

So I discovered because these nice, kind, polite, honest real estate agents who are principled people and have the highest level of integrity, so I figured that my offer should just start out through the listing agent! Unless of course I am making a full price offer which I would still do through my own real estate agent! (In a lot of states a full price offer without competing offers must be excepted by seller)

Because the listing agent gets better money swinging both ways, I found it's better to bite the bullet and break the investor "10 Commandments of real estate" and let the listing agent submit my offer, as I have found I get about twice the number of my contracts excepted when I do this. If I write 50 contracts I am getting more than one excepted!

Now I wonder why I don't have very many real estate agent friends; go figure!!


                       GR
« Last Edit: July 22, 2011, 05:56:33 am by Gold River »

 




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