making offers on reos …do we stick to the wholesale formula or raise our price a little
Im in the same boat as you.
People are willing to pay way more than the asking price …its a buyers frenzy market right now.
I look at it like stocks.
Don’t follow the crowd…stick to your formula. If it makes you money then go as far as your able and still give you coushin.
Im no expert or even a seasoned veteren on investing but I think we shouldnt get sucked up into the hype that is going on.
I had to pass on lots of deals because of people bidding at or above asking price.
And it sucks!
I would advise you to stick to your formula. Trying to compete with owner occupants can end up costing you in the long run.
Be very careful of agents.They are so ready for the market to get better they are jumping all over themselves.Just do what you always do,don’t end up a victom.By the way I’m not throwin agents under here,my wifes a realtor.Good luck,keep your focus on your numbers.
There is an oversupply of opportunity. Stick to your formula. The agents may be full of it or they could be telling the truth. A property is only worth what you are willing to pay for it. If you are not finding deals in an area, try a new area or different strategy. But always buy right.
Stick to your strategy. I’ve been outbid on several properties over the past year. I’m finding it harder to find deals in this market than 3 or 5 tears ago.
I’ve watched several properties that I lost get rehabbed and then sit on the market for over a year, and still sitting. I can’t believe these people are making money on them knowing what they paid and what it costs for rehab
I just rebid on 1 estate property today…same bid I bid 10 months ago and was rejected. If rejected again, I’ll rebid in another 10 months.
I only regret passing on 1 where I lost out by $5k on a $135K property.
I’ve noticed the same thing… A property will be listed and then all of a sudden there are 10 offers , several over asking…supposedly.
Of course it’s in the Realtor’s interest to say the market is “hot” whether it is or not.
There were a lot of owner occupants and investors on the sidelines and now they are trying to get in the game .
A lot of realtors are listing stuff for less than what they think they can get in order to get a bunch of buyers to bid against each other.
But if you see something that is a good deal and will cash flow or make you money , does it matter if you are paying the asking price? I know a lot of people are trying to buy for 20%+ under the asking price…but that might be nearly impossible if it’s already priced low.
Sometimes, list price is excellent - and you could be blowing a good opportunity by making offers below list price.
I’ve had this situation happen to me, where I feel compelled to offer less than list price, when list price is several thousand below my “number” (which is already extremely low).
You have to have confidence in your system and know your numbers.
Good point investorman and ogibson
makes sense if you already see a good deal that follows your formula and you make money then it would be foolish to low ball and possibly loose the contract.
Never thought of it that way.
Maybe offer 200 dollars more than asking?