How Many Properties Do You Look at to Make One Purchase?

[Don Konipol]

Ok, here’s what I’m asking

If you are an active real estate investor, how many properties do you do at least a cursory look at for each property you make an offer on?  How many offers for each completed deal?

If you are a note investor how many notes do you look at for each one you make an offer on?  How many offers for every one you complete the purchase? 

If you are a lender how many loan submissions do you see for every loan you fund? 

And if you’re a flipper/wholesaler how many deals do you look at for every one you make an offer on.  For every one you get a contract accepted? 

I’ll go first.  As a lender I see 30 loan submissions for every one I offer to finance, and close about half of my offers.

As a note buyer I see about 10 notes for everyone I offer on, and close on about 75% of my offers.  NOTE; This is skewed as I don’t look at any notes that won’t yield at least 12% at offered pricing, I don’t look at any residential notes, only commercial, and no notes under $500,000 principal balance, so most notes are eliminated before hand. 

As a real estate investor, I at least do a cursory glance at about 100 properties for every one I buy, however I almost always close on my offers.  In days when I was a more active property buyer, I probably made 3 or r4 offers for every one that was accepted.  

What has your experience been?

[Chris Seveney]

Quote from @Don Konipol:

Ok, here’s what I’m asking

If you are an active real estate investor, how many properties do you do at least a cursory look at for each property you make an offer on?  How many offers for each completed deal?

If you are a note investor how many notes do you look at for each one you make an offer on?  How many offers for every one you complete the purchase? 

If you are a lender how many loan submissions do you see for every loan you fund? 

And if you’re a flipper/wholesaler how many deals do you look at for every one you make an offer on.  For every one you get a contract accepted? 

I’ll go first.  As a lender I see 30 loan submissions for every one I offer to finance, and close about half of my offers.

As a note buyer I see about 10 notes for everyone I offer on, and close on about 75% of my offers.  NOTE; This is skewed as I don’t look at any notes that won’t yield at least 12% at offered pricing, I don’t look at any residential notes, only commercial, and no notes under $500,000 principal balance, so most notes are eliminated before hand. 

As a real estate investor, I at least do a cursory glance at about 100 properties for every one I buy, however I almost always close on my offers.  In days when I was a more active property buyer, I probably made 3 or r4 offers for every one that was accepted.  

What has your experience been?

 we do notes as well. for non performing loans we say $800M in loans last quarter, we bid on approx. $50M of them and our hit rate (what we close on), is typically around 10%. Its been lower lately because of bid-ask spread and I can get the same returns on a performing loan as some of these NPL sellers are asking. Once they come back to earth on pricing I am sure that will go back up. 

I see a lot of people who are gonna get crushed as they are buying NPL's based on thinking they will foreclose but the borrower has a high likelyhood of filing BK to keep their equity and people are paying 80 cents for a 3% loan that is a year behind which is insane!