How are you buying your properties?

Question

For all the rehabbers:

1) Where are you buying your rehab properties from? MLS, Wholesalers, etc.?
2) If you buy from multiple sources, can you please list those sources and what percentage you buy from each?
3) For those buying from MLS, how many offers you usually make before one is accepted?
4) Follow up to # 3 above, do you usually go look at each property you make an offer on or make multiple low ball offers with some contingency?

Thank you in advance for all the responses.

J Scott · Answer

95%+ off the MLS...all REOs...

I was averaging an accepted offer for every 3-4 offers I was making (back when I was more picky), but these days it's probably an accepted offer on every 6-8 properties.

We generally call the listing agent prior to putting in our offer, and since we have good relationships with many of them, they'll often give us the information we need to know if we should bother putting in an offer or not (for example, how many other offers are there, are they owner occupants and how close to full price).

So, this probably helps our numbers somewhat, since we don't put in offers if we already know we likely won't get the property...

Corey Demuth · Answer

Mike, any chance you'd share that 4-page spreadsheet you use to analyze a property prior to buying?

Valerie Lowe · Answer

I get all of our deals off the MLS, since I'm an agent. I study it religiously, daily, looking at my preferred areas to invest in.  So far for myself and my partner, and my contractor client, we've managed about 1 out of every 3 offers accepted.  But, I tend to stay away from the ones that want to look at "owner occupant" offers first, or even most HUD owned homes.  I look for strictly REO's that have very simple instructions and have enough problems with them that usually, only a cash deal will work. That keeps the bidding wars to a minimum.  
We always look at the homes before placing an offer.  We do ask for an inspection period, but we have never backed out of an offer yet, it's just nice to have a little more time to look it over.

Valerie Lowe · Answer

sorry for the confusion.  Two of us use the same computer and I was loggin under the wrong person.  OOPS!

Cheryl Pokorny · Answer

I get all of our deals off the MLS, since I'm an agent. I study it religiously, daily, looking at my preferred areas to invest in.  So far for myself and my partner, and my contractor client, we've managed about 1 out of every 3 offers accepted.  But, I tend to stay away from the ones that want to look at "owner occupant" offers first, or even most HUD owned homes.  I look for strictly REO's that have very simple instructions and have enough problems with them that usually, only a cash deal will work. That keeps the bidding wars to a minimum.

Mike V. · Answer

Sure, pm me and I will send it your way.  Although it is a spreadsheet I don't use it to automatically generate numbers but more just to quickly note the necessary repairs/improvements based on condition and types of materials present.  Without this systematic approach I find myself getting distracted and overlooking areas of concern. 
Once I get back home I can quickly add dollar values to each category based off past rehab experience.

Mike V. · Answer

Over the last two years I am averaging 1 accepted out of 7 offers all from the MLS (there was one from a wholesaler but it was previously on the MLS - he beat me to it and wasn't too greedy).  I look at every house that I bid on and I bid on almost every house that I take the time to look at and analyze.  The only contingency I have is financing if its too big of a project to do with cash.  I typically spend 30-45 minutes at a house with a four page spreadsheet that covers more than a typical home inspector would ever look for.

Mark Yuschak · Answer

95% of everything I've bought has been from the MLS.  Since I'm an agent, I watch it like a hawk everyday.  Like J stated, before submitting an offer, I always check with the listing agent first to know the status.  If it's a really juicy deal on a property that I badly want, I ask the listing agent's permission first to put them as the buyer's agent (never had one tell me "no", but it's polite to ask first).

Never gotten anything from a wholesaler.  IMO, they're like bottom feeders and don't stay in business long.  I don't know of anyone in my area who has bought something from a wholesaler.

Never needed to do any direct marketing since the MLS deals are still plentiful.

I bought one property which was listed on CL.  Resold it 2 weeks later for a 110% profit using bandit signs.

Jeffrey K. · Answer

I get about half from MLS or through commercial brokers (I am looking at bigger buildings).

I have never gotten anything from a wholesaler.

I get a few good leads every once in a while from a vendor.  Your paint rep and hardware store owner will know all of the players.

I get a few from bank contacts, but this isnt happening as much anymore because the banks I had relationships with got aquired.

I send some targeted letters and have never gotten a deal from that.

I got one deal from a neighbor at one of my rentals.  When you are out working make sure your neighbor has your card and that you take the time to talk to them.

I have around a fifteen precent acceptance rate.

How are you buying your properties?

Most Popular Reply