Finding Deals and Making Offers

[Chris Ferren]

I'm current preparing for my first flip, and I'm getting all my ducks in a row before I do so. I'm working with a partner, and I'm planning on starting to make our first offers in about 90 days. Before we do so, I need to set up an LLC, consult with a CPA, and get all our financing prepared. My question is this...

How does one make offers on property without having a real estate license? By using an agent, you need to rely on them to do everything. They have to take you to the property so you can look at it and evaluate the deal and see how much money it will take to fix everything up. Most real estate agents will not waste their time bringing you to 15 different REO properties so you can write offers where you may not even get one accepted.

To follow up on this, even once I get my real estate license, it seems like a lot of spent time going to each and every house and evaluate every one to write an offer. Do any investors just write offers without looking and visiting the property? How does everyone else write offers? I've read blogs where people say they write 20 offers or so before one gets accepted. Are you visiting all these houses first and do a rough analysis?

Any time saving tips to be more efficient would be great when it comes to writing offers. Thanks

Chris FC

[Jake Kucheck]

If you're not married to the idea of going after exclusively REO, you may find it easier to build relationships with agents in other parts of the distressed spectrum. For example, properties that are being sold due to divorce are usually equally motivated (if not more so) than REO, and are certainly easier to negotiate with. You may want to find an agent that specializes in these (I'm one of them), or a similarly non-REO distressed situation before trying to tackle an REO listing agent.

All of that said- be ready to perform when the rubber meets the road or all of your hard work building relationships will be for naught.