I’m new to REI and I use my wife who is new to RE. I had her pull some REO properties from MLS, I selected a few, did some numbers and asked her to submit the offers. She was VERY hesitant because she said I was low balling the banks and the banks agent probably wouldn’t submit my offer anyway. Let me preface by saying these will be my first offers as well as here first off submissions.
Because they are attached I went with a 60% ARV minus repairs, minus points. Here are some numbers.
- Offer $52,700 for 2/3 @ 1100sf. LP $119,000
- Offer $40,460 for 2/2 @ 900 sf. LP $110,000
COE 14 days after acceptance.
Contingent upon partners approval.
Is there something I could share with my wife to help ease her mind.
What are some other contingencies I would want to add to protect myself?
Good to meet you
There is a lot… All kinds of ways to skin a cat in the real estate business. No reason to input upon partners approval since the contract is passive and allows for a 16 day inspection period. I wouldn’t mind explaining the CAR contract ind detail to both of you if needed…
Good house hunting
Mike, that would be awesome. Now, I thought when you bought ‘as is’, there were no inspections… Ok, I’ll take you up on the explanation… I’ll shoot you a message…
Nothing is as is in california now that we have the requirement of a TDS
Just something for your wife to think about. For many years I had several small lenders using my brokerage to sell properties they had taken back.
I loved a bunch of low offers to assist in putting the lender in the right frame of mind, and yes I would shop it among my investors before presenting all the facts to the lender. Any agent who resents any offer is an idiot. I can’t tell you the number of times a very low offer escalated to a fair offer.
So don’t fear the agent, just consider them stupid, and fearful of their client. At times the lender would put a number at which I could present offers, that was cause for a very long talk with them.
Good one Brian, He tells his wife she’s an idiot and he thinks she’s stupid. What else do you think he won’t be getting? Herbster
This interpretation only applies if she is the lenders listing agent and resents low offers.
I was trying to convey the message don’t worry about what a REO agent might think, if they are any good they will say thank you for your offer no matter what it is.
Of course I have met a few in the last year I have had to ask “Have you always been an idiot or is this a new thing?”
I understand Brian and I agree, I was just messin with ya. Herbster