Was I out of line? Advice

[Fernando Cardona]

well I’ve been watching and learning a lot books and bigger pockets webinars and articles.  In one webinar Brandon says that it’s not the price it sells for it’s the price that works for you. He also says get a good real estate agent.

So I wrote in a Facebook group that I was looking for real estate agent.

A few people contact me.  And One person asks me that if I’m talking to other agents. That if I wanted to work with that person shouldn’t be talking to several as to not waste time.  

It made sense to me.  So I wrote back this.

I saw email.

Just so we are in the same page I will analize the properties you send me and I'll estimate for an 8% ROI.

And submit offers on the ones I think would work for me.

Is that okay with you? Meaning I expect to be rejected at least 9 out of 10 times.

Not going to write exactly what the person replied because I don’t think that’s appropriate.

The person replied something similar to this:

While she appreciates that I want to get a good return on my investment, this is considered low balling, and it’s not a good practice.  Most investors have an intent to purchase, and that is offering close to market value and id be best served with someone else.

Second question if a property is sold for 140000.  Offering 98,000 is that considered low balling?

Well any insight appreciated. I’m fairly new and don’t want to offense people. 

[Shiloh Lundahl]

@Fernando Cardona people can get offended at a lot of things. When it comes to business, especially in real estate investing, it is not about offending or not offending, it is about numbers, and what numbers will work for you. In my opinion, knowing what the top of what you can pay for a property and still make money is one of the most important parts of making money as an investor.  We have made low offers on several properties with and without using an agent. The way we often do it is I will send an email to the sellers agent or my agent will email the sellers agent and say “I am an investor (or I represent an investor) and I am interested in purchasing this property. The most I could offer would be $xx.xx. Let us know if you would like us to write up a formal offer.” Most of our offers are either laughed at, rejected, or ignored. However, some get accepted. Because the seller’s agent knows we are investors they know we are less emotionally attached to the property and we are operating from our set of numbers. If the numbers are acceptable enough they will pass it on, if not, they won’t.