All Forum Posts by: Harry Metzinger

Great advice @Joe DiGirolamo.  If you don't mind, I would like to set up a call with you sometime.  You seem like a wealth of knowledge.  There was a BP blog post I referenced above that said make your highest and best offer upfront.  Now you're the third person to tell me otherwise.  Unfortunately there is not much wiggle room in my initial offer, and I represented myself in the offer...oh well, 0 for 2, live and learn.  This property has been on the market over 100 days, and given the work required, I don't think that an owner occupant would be interested.  I would like to think that there will not be as much back and forth w/ counteroffers given the apparent lack of competitive offers.  So long story short, I failed on both of your major points.  Please let me know if you would be receptive to a call.  Thanks.

@Account Closed Thanks for the congrats! Based on everything I have read, I decided to start my search w/ REO homes. I am not opposed to working with wholesalers, but I would much rather utilizing financing via a mortgage + home equity loan for down payment and/or repairs at around 5% interest than do a cash deal (which would require a hard or private money lender at an interest rate much greater than 5%) for my first purchase. I have the ability to buy the first property without any other funding sources. Now if I strike out initially with REOs and a wholesaler presents a great investment opportunity that could only be had w/ a cash offer, I would be foolish to not consider other funding sources.

Thank you @Mathew Gunkel!  I see you're a South Jersey guy too.  Where are you in your real estate investing pursuits?

Thanks @Percy N..  I am looking in South Jersey.  I am focusing on properties within 15 minutes of where I live.

Hi Luke, welcome to BP! If you are getting serious about investing in rental properties, I definitely recommend you join your local REIA (Real Estate Investors Association). A quick Google search should help you out. BiggerPockets has plenty of blog posts and podcasts that are worth checking out as well. Even if it's just reading one BP blog post each day or listening to 15 minutes of a podcast a day, make it a point to build your real estate investing knowledge each and every day.

@Percy N. Thanks for the explanation.  That makes sense.  Have you pointed out flaws of the property or taken another tactic to try to influence the listing agent to get the lender/asset manager to come down on price in the past?  If so, what specifically worked for you?

@Percy N. Thanks for your insights.  In your experience, how does the listing agent impact the decision?  I thought the determination of acceptance, counter, or rejection rests solely with the lender.

@Anthony Yannucci @Richard Fields

Anthony, thanks for your reply. Yes, my offer is below list price. In fact, it is quite a bit lower than list price. I do not calculate my offer based on the list price. The house has been on the market for a while, and it's because the list price is not reasonable, at least for an investor. My offer was determined after looking at the necessary repairs and what the LTV would be after factoring in purchase price + repairs. Since my plan for this property will be a rental, I am willing to go above 70% LTV, but not by much.

Thanks for your insights Richard.  Do you usually list your highest and best offer upfront, or do you provide a little cushion in your offer with the expectation that the lender will follow up w/ a counteroffer / request for highest and best offer?  How soon after the lender asks for highest and best offer do you usually hear a final decision?

Hi BP, excited to say I made my first offer as an educated real estate investor today on a Freddie Mac REO property. I emphasize the "educated" part b/c I made an offer on an investment property 14 months ago...and then realized I had no idea what I was walking into. Thankfully that offer (it was on a short sale) was not accepted in the contract period and I was able to get out. Long story short, after realizing how little I knew about real estate investing, I found my local REIA, and through that found out about BiggerPockets, and now I am MUCH more prepared to enter the world of real estate investing.

I am a real estate agent so I submitted my offer directly to the seller's agent this morning. I did not hear anything from the agent today, not even an acknowledgement that he received my offer. My Proposal to Purchase is good for 15 days (which was recommended in a recent BP Blog post). Therefore, I was not expecting an answer today or even tomorrow. However, for those of you who have made offers on Freddie Mac REO properties, I am curious at what point do you think I should follow up, if at all. Also, if the lender counters my offer, how would you respond? More specifically, I am curious if/how the timeliness of the Freddie Mac's response and the amount of the counteroffer in relation to your offer influences your response to their counteroffer.

Thanks for your advice.