Spinning my wheels acquiring my next rehab!

[Ryan Fatula]

Hi guys,

Over the past year I've successfully flipped 2 REO properties I picked up off MLS. I'm an agent and got them both relatively easily. I placed an aggresive offer on the first, and on the second I had the REO listing agent place the offer for me. (thanks BP for the tip!)

Anyways, I'm back in the market for my next rehab and Ive been pounding the pavement estimating rehabs, calculating ARV's, and placing max offers on properties. The Orlando REO market is INSANE right now. Inventory is low all around, and properties are FLYING off the shelf!

I've placed 10 offers in the past few days and all of them have been rejected, except 2 that I'm still waiting to hear back on. In fact while writing this I just got an email that another was rejected! I might have high expectations because my first 2 went under contract so easily, but I know that the market has also CLEARLY changed.

My first question is, how many offers do some of you place before you get one accepted? I know all markets are different and it depends on if you're going after a fair market sale, REO, or Short Sale, but I'm curious.

I'm scouring BP this evening and trying to learn as much as possible about buying actual foreclosures at auction. Interestingly enough my local county auction recently moved from the courthouse steps to an online format, which I would actually be more comfortable with. (Hey, I'm 28 and grew up online!)

I'm exploring all new ways to acquire rehabs now. I read that marketing to private sellers/owners would be a good idea. I was considering creating a " I buy ugly/old houses website" and SEO the hell out of it. What other marketing techniques could a rehabber consider? Direct mail? "I buy houses" signs?

Also, I have a couple wholesalers calling me, but I just have not had a great deal come across my desk from them. Mostly just junk off the MLS with a jacked up price. These guys add no value!!

I guess I'm just venting a little bit. I'm not going to give up, because I LOVE REHABBING!! I thoroughly enjoy RE in general.

In short:
1. How many offers do you place on MLS properties before you get something under contract?
2. Maybe its time to move onto the big bad foreclosure auction? After some due diligence of course. I'm most concerned about the actual process of doing my lien searches.
3. What are some good ways for a rehabber to market for new properties? "I buy houses" signs and SEO website? Direct Mail?
4. Keep looking for that AMAZING wholesaler who actually gets good deals?

Thanks everyone. I know this was long, and as I said. Kind of venting here :)

[Jennifer B.]

Same issue in Seattle! I'm doing and/or working on doing a lot of what Monica mentioned.

The only thing I'm doing that has not been mentioned is talking to local banks and asking if they have any inventory or properties they need to sell. I build homes as an investment strategy as well so I have received more land deals than houses, but it may be an option worth trying.

You can also look up which local banks are operating under a cease and desist order from the FDIC, those ones are going to be the most motivated to get negative assets off their books.

Make sure you find out which branch is the main branch, and ask to speak to a special assets manager. If you can get an appointment, just ask if they have a list of properties currently owned by the bank that are not on the market yet, or if they are interested in selling any notes. It may take several conversations and/or closed doors before you get any information, but it has definitely paid off for me and I've had access to many properties that were not on the market.