All of my offers are being rejected because they think my offers are insulting.
I’m taking FMV
My offers are turning out to be almost 50% off FMV
What am I doing wrong?
Any advice would be greatly appreciated.
You might want to start making offers on ugly vacant houses. If your making these low ball offers that don’t need repairs then you won’t get the discounts you need to make money on houses.
Hi there.
First of all don’t give up!
Making offers and being in the mix puts you 90% ahead of everyone else that is just
‘reading or dabbling’ in real estate investing.
You just have to make a few tweaks.
As aaron brought out, maybe these offers are on the wrong properties.
Many times lowballing works on properties that need to be repaired, short sales etc.
You may also not be dealing with motivated sellers for one reason or another.
Additionally, your calculations seem to be based on getting hard money loans to fit within that type of formula. By widening your knowledge base of how to acquire properties (subject to etc) you don’t have to stick with just the traditional buy and flip type transaction.
Many investors are familiar with these creative strategies and can buy creative flips from you if you know how to sign em up!
Dennis
My personal advice is to aim for the abandoned properties, do your homework on the owner/their situation and use that info to structure an offer that they will go after. I know of more people having success with this method, but all of the people working the MLS just seem to be running in circles.