In your market today what percentage of your offers are being accepted?
Just trying to get a sense of how many offers people are putting out and what is getting accepted
Are you using cash, hard money/private money or conventional financing?
I made about 6 offers using hard money . I believe around the same time , 1 was accepted but upon inspection realize it needed too much work to be a deal.
Also how many offers do you typically make in a week or month?
It seems like it’s really a numbers game with these REOs , and I’m finding that the ones that look like good deals go really quickly. There was one that was put on the market on Friday 3/13 and then by Monday the status on the listing was already Contingent .
I am looking at properties under $50,000
This is very subjective? What State and area of the country do you live in?
How is the real estate market? How is the economy? What is the unemployment rate? How much property is reserve to normal markets?
If you write contracts how do you determine your costs and expenses? What kind of profit margin do you project? How long do you think you will hold in this market? What kind of financing are you using? How quickly can you close? Are you trying to make it a win / win for everyone?
Do you have a pre-approved loan? If your asking for owner financing, do you have good income and credit? What terms and conditions are you requesting from the seller? Do you have more than the couple of basic contingencies?
When you make offers do you make them like a shotgun blast? How well have you analysed the numbers? How well do you understand market comps? How well do you understand rehab costs? What and how do you calculate purchase and sale expense?
How many contracts do you have to present in your area to get one excepted? Is that really relative to another state or area?
You see, how many contracts I write is relative to all the above information and is subjectively different because of my area, my desires and my personal level of experience.
REO’s are not rocket science but you are competing with end users who look at and make offers to have a home to live in! If you want to bypass the end user and the realtor, talk directly to the banks or lenders in your area! Build a relationship to help the bank or lender get properties off there books! Try to get the bank or lenders REO list before they are listed with realtors!
Good Luck.
GR
my numbers work like this
to close on one I need to have 3 under contract
to get 3 under contract I need to make offers on 6
to make offers on six houses I need to view 20 houses
the reason why it only 1 of 3 closes is because of things like title issues, appraisals coming in too low, repairs too high, etc
We don’t make tons of offers because I target specific properties that fit our goals. Therefore, most of the properties we’ve made offers on so far we have ended up purchasing. If the REOs are priced right and the bank is motivated, they go quickly here. We use mostly conventional financing, but are using cash on our current deal. We may not make a certain amount of offers in any given month, but we’re always keeping an eye on the MLS and looking to buy pretty much all the time.
Thank you for the responses , I have found that most of the REOs are going pretty quickly in the area I’m looking in as well.