Open house tonight for a flip! Advice?

[Jazmine S.]

I know it will be a blood bath. 100k original asking price for a 4 bedroom where most 1 bedrooms have an ARV of 100-180. The property was under contract within hours of listing and I assume they realized they could get more for it and decided to go with an open house.

I am seeking out a property for my first investment (my REA is extremely reputable and experienced however). Since there are hardly any distressed properties in my entire county right now, I want to at least show up and give it a shot.

Any and all advice on how to get noticed, what selling points to make that would sway the seller towards me even if my offer is the same as the others, industry standard rules/etiquette for open houses etc. are greatly appreciated.

[Charlie MacPherson]

@Jazmine S.  I'll intersperse my answers below:

1 - My REA stated that negotiations do not happen at the time of the open house, they happen afterward. Is that accurate? I imagine the whole night to be full of negotiation? Especially for a hot ticket item... I assume a prospective buyer can go under contract that night in the middle of the open house if it makes sense for everyone?

This might vary by market, but in general he's right.  However, if the seller is right there in front of you, there's nothing to prevent you from making an offer on the spot.  If you do, I'd say make it expire at the end of the open house.

2 - As for my POF, do you mind if I send it over to you? They did not look at anything other than my credit report, however since it is for a line of credit I do not know if the format is different than standard HML etc. I'd be curious to see if you'd just laugh and move on. (It is also dated Feb. 8th. Should I keep it updated within 30 days or so of my offers?).

When I'm representing a seller, I want to be sure that the pre-approval is solid.  The key question to ask a lender is this: "Did you run this through DU" (desktop underwriter).  DU requires input of all of the docs previously discussed - W2's, pay stubs, tax returns, etc.

If all your lender did was check your credit report - even for a HELOC - I don't think they've done their homework. If your line is secured by your home, they should at least have done an appraisal.

The main question I have is what kind of line it is and what secures it.  

3 - Finally, if I want to go above and beyond with documentation... POF and contract are the obvious. I assume if I am doing business as an individual my D/L and SSC, as a business my D/L and SS4... Anything else that gives you a sparkle in your eye and makes your life easier? Comps?

I don't care whether a buyer gives me comps.  I've already done my own and I don't fudge them.  I don't need your D/L either.  I'm looking for a strong, verifiable PoF or pre-approval, a strong deposit and an offer with the fewest possible contingencies.