Philadelphia, PA · Member since 2017 · 32 posts · 4 votes
Hi everyone, I am new to investing into real estate and always think what might be an appropriate bid. I saw forum and video of just doing the math and putting in a bid that works for you, even if it’s super low.
So i was curious, what was the lowest bid you ever offer on a property and how it turned out.
For simplistic format, if you can state the following:
Asking price, the % you offer on the asking price or what you offered, Did the seller accepted,rejected, or countered (with what), and what was your experience?
Flipper/Rehabber · Lakeland, FL · Member since 2019 · 131 posts · 91 votes
6y
@Edward Shen
List price was $202k REO. I did the math (super conservative) and figured $149k offer would net me between $25-$28k. Bank called last and final 3 weeks later. I redid the math - tried to figure out ways to make the rehab cheaper but left my "oops fund" alone. Offered $168,407. They called last and final 3 more times. I offered the same amount (all between Oct and Feb) every time. They accepted and we closed in 4 business days.
Just listed the place and it is under contract for $21k more than I originally thought (6 DOM). Also cost more than I thought. But I made out way better than I thought on my first fix & flip roughly $40k.
Lucky the market is so hot right now and inventory is so low.
Flipper/Rehabber · Lakeland, FL · Member since 2019 · 131 posts · 91 votes
6y
@Edward Shen
List price was $202k REO. I did the math (super conservative) and figured $149k offer would net me between $25-$28k. Bank called last and final 3 weeks later. I redid the math - tried to figure out ways to make the rehab cheaper but left my "oops fund" alone. Offered $168,407. They called last and final 3 more times. I offered the same amount (all between Oct and Feb) every time. They accepted and we closed in 4 business days.
Just listed the place and it is under contract for $21k more than I originally thought (6 DOM). Also cost more than I thought. But I made out way better than I thought on my first fix & flip roughly $40k.
Lucky the market is so hot right now and inventory is so low.
Philadelphia, PA · Member since 2017 · 32 posts · 4 votes
6y
@Stephanie Simmons
That’s amazing! So did the 149k first offer got rejected? Or you had to make a final offer cause they didn’t accept it right away? I am glad that things worked out even better than you expected! My biggest worry right now on a house that i am considering is the repair cost... I am buying a shell house and it’s 100k (which was already reduced from 115k) On the market for over 70 days. I want to offer 60k since it need all new renovation. it’s 800 sq feet.
Flipper/Rehabber · Lakeland, FL · Member since 2019 · 131 posts · 91 votes
6y
@Edward Shen
I start with after repair value - rehab costs - $$ you want to make = the max you can offer.
Also consider selling costs and holding costs into the rehab budget if you intend to flip.
Do you have a contractor that can give you a scope of work and a fairly firm bid for the rehab? Also add a 10-15% contingency because stuff will happen A LOT.
No they never rejected my first offer - they just did this "last and final" 4 times. Then I guess the REO person at the bank figured that was as much as I would offer and took it.
Flipper/Rehabber · Lakeland, FL · Member since 2019 · 131 posts · 91 votes
6y
@David Abbate. So true on the market right now which is why I am buying a small service business next month. I’m still looking for properties, but it will most likely take months to find.
@Edward Shen. I made 5 offers a week and it was 4 months until one closed. Just follow the formula. Look at 6-10 properties a week and pick the best 5 to put in offers and keep moving. I’m a licensed agent so it was fairly easy for me - if you don’t have an agent that works with investors you might want to find one in your area.
Philadelphia, PA · Member since 2017 · 32 posts · 4 votes
6y
@Stephanie Simmons
Thanks for the tip! I usually want opinion of others that i work with before i put can offer. However, most of the offer is usually low balling due to the price that i want to pay with my calculation. I told my realtor that i wanted to low ball a place that was on the market for 70 days and looking at comparison around the same area it was not worth 100k. He answer that “He understand, but within reason”. I don’t get why realtor think it’s wrong to put in low balling offer especially if the buyer know that’s what he is doing for the price he wants. I mean no disrespect, but it seems like i am being shame for low balling, idk.
In your opinion, if i were to offer 60k cash, will you consider selling a house that need full rehab?