How Many Offers a week should you make

Question

How Many offers should you make a week when purchasing off the mls for buy and hold rentals. My agent said the market is very competitive so should I make a lot of offers on has any properties that fit what I am looking for or should I make a few a week thanks

Russell Brazil · Answer

I buy about 1 property a year......I know eactly what it takes to buy the properties I want, so Im typically making 1 offer per year, maybe 2. I dont mess around just throwing stuff at the wall. If I want the property, Im buying it.

Frank Wong · Answer

It all depends on what type of property you are going after at a specific price range and also what you bring to the table as a buyer. Are you cash, FHA, 10% down, 20% down? Are you asking for inspection contingencies or going non-contingent? Are you aggressive or you just trying to throw in low numbers? I am with @Russell Brazil I don't play around. I go for the property if I want it my time is worth more than trying to penny pinch. I am an aggressive buyer but my analysis is on point.

Jacob Sampson · Answer

Make as many or as few as you want. As long as you are comfortable valuing a property and you make offers that make sense for you. What will happen is that in hot markets none of your offers will be accepted and in slow markets more of them will. Just don't adjust what you are willing to pay based on the market.

Theresa Harris · Answer

Put in offers on places you are serious about. Ask yourself if all of the offers you made were accepted, would you buy all the of the properties? If the answer is yes, then go for it. On the other hand should the answer be no, then don't put offers on places you aren't serious about.

Matt Arden · Answer

@Frank Wong all cash offer, I am going after SFH around 50,000 - 60,000 something that needs some work with a inspection contingencies I am not in the area I live in Florida and I am going after properties in North Carolina I am Pretty aggressive, not low ball numbers. This is my first deal so I made about 5 offers came close but never got one accepted yet

Matt Arden · Answer

@Christopher Giannino so what i have been doing is putting an offer in just so I can be a part of the highest best round, then I try to do what you said and putting highest offer I can put that makes since it will be a B.R.R.R.R so I try to get has close has I can on repair cost what the ARV is, and make my offer off the those numbers. What I was thinking about doing is doing that strategy but on about 7-8 properties cause the whole process takes a week or 2 and waste so much time. I was just going to keep making offer till I get one. One that meets the right criteria to cash flow positive and I can pull most of my capital out and keep going. My agent said she doesn't mind has long has there not low ball offers that she know they won't accept. Is this something I should consider so I don't keep wasting time waiting to see if my offer is accepted thanks.

Christopher Giannino · Answer

If there’s that many offers coming in on a property, why don’t you just offer your maximum allowable offer from the start. This way you don’t have to waste a bunch of time. You know at x price you’ll make what you want/need. Only thing I’ll say is if you’re a newer investor, make sure you understand what you’re offering and don’t cut yourself too thin.

Matt Arden · Answer

@Jacob Sampson thanks for the reply this will be my first property, I'm just ready to get started but not to ready that I will purchase a bad deal. I have made offers and got close but didn't know if there was a better way to get a property under contract thanks

Matt Arden · Answer

Thanks for the reply @Russell Brazil and @Christopher Giannino what I'm dealing with is there will be a foreclosed property that comes up on zillow and the mls they put the price pretty low and let investor make an offer on it, then they have a highest best round by a certain date, and this process takes a week or 2. So should I make offers on a lot of these types of properties at once (not low ball but far offers) to save on time and hoping that I will win one of them it will be a cash offer. (My agent said that one property she bid on had 65 offers) or should I stick to the best ones and make offers on them. Thanks again

Christopher Giannino · Answer

I think it depends... If your plan is to low ball offer every MLS property possible to make it into a deal and just wait until a seller bites, you probably will have to offer on tons of properties to just get one deal but if you know exactly what you're looking for and those numbers that support it, you probably will be like @Russell Brazil where you only need to offer a couple of times a year. I can't speak to your market but my market is pretty hot so when something decent comes on the market and a client tells me they are going to offer $X,XXX amount under list price I usually know right there that they aren't truly serious about buying the property.