All Forum Posts by: Marc Imhof

@Michael Plante ..Hi..its relative to listing age and your relationship and your strategy (I brought it up here because if he is making offer and it is on the market already 50 days and already dropping etc..then absolutely must get rejected first in order to know where the bottom is..and that is why I said nicely too!).  There have been steals that were priced wrong that the only way to get is to go OVER and there is sufficient meat on the bone and area is prime.  I love the aged listings for this reason, the euphoria is over and they are pleading for something to go to owner with and justify.  The concept of first offer rejected absolutely applies when dealing one-on-one with owners where you create & control the environment.

Hi Wesam, neither of you are wrong, its all about strategy and which to use when and leverage multiple niches.  There are literally thousands of transactions going on all around you.

You mentioned above that you have leads that it sounds like you guys are passing on. If you have real seller leads that you guys have passed on and you are not doing anything with, please consider sending them my way and I'll see if we can do anything with them and figure out a way to circle the wagons. Specifically, residential off market leads (non-MLS). Not sure if that is what you have because your reference to leads mentioned brokers are involved. Are you generating leads or having agents send you listings? There is a difference. Anyways, keep me in mind if you have a owner/seller leads come in that you guys pass on!!! Send it to my contact info below!

Hi Bob, couple more things to add regarding your MLS activity...and maybe you've already thought of some of these:

• Sounds like you are making offers through someone other than listing agent (L.A.).  From an investor perspective, making offers directly to the L.A. will lead to more flexible deals and larger price drops.  Leverage your realtor friends in other ways.  Think about it, if full offer is 100k, they split 6% so 3k each.  A 70k offer to listing agent who does both sides is a $4.2k payday..higher than if they sat around and waited for a full offer they need to split.  Also means more flexible with you overall because they have bigger paycheck and more direct negotiations.
• Only offer once you know the seller story, how long on the market, original listing price.  For example, what if the seller story would open up the seller holding financing short (or long term).  You might not need to use all your cash do get that deal....so that affects your offer strategy. 
• Your initial offer should ALWAYS get rejected...or you paid too much. This means you do seek counteroffers. So once you calculate your MAO, do not start with that...start with much less that will guarantee a no. Do this nicely.
• When the counteroffers come back, your position is stronger.  Could be the counter offer was even less than what you were thinking about offering!  Also, from your position, you can add 'I really want to give you X, but we'll agree on Y as long as Z.  And Z can be any extra thing like extra inspection day etc.  including your piece on the deposit.  
• The reason they want larger deposit is to figure out if you are solid.  How solid are you depends upon your strategy...are you just getting a contract to wholesale or do you intend to close?  If you intend to close and you are using cash, why is it taking 10 days?  If it's for title, then the contract is already protecting you and if not, you can put subject to clear title and final inspection.  Other than that, if you are on contract and intend to close, there should be no other reason for you to worry how much you put down (because if it is really for a real contractor inspection - then you should do that before you offer in the first place if you are buying for yourself - otherwise that is what the L.A. is trying to avoid, you locking something up and coming off when you find x thousand more damage you missed).  And if your intention is to wholesale and protect your deposit, then take care of that differently.  Tell them you'll place x deposit after your inspection period...and remind them that after inspection period only contingency is clear title.  Make sure your inspection period is therefore long enough to assign deal...and if not.....you get the idea.   Tell them all this as part of "Z" above in the negotiations.
• But having said above about buying yourself versus wholesaling...irregardless of which, when you push off the counter, you can also tell the L.A. what you are putting up for deposit and if its been on the market a while, you are more likely to get your way, versus a listing out only 3 days. As a cash buyer myself (and wholesaler), I would never put up that much deposit if not needed to (again, it's relative to if I am keeping it and how long on market). And if the deal was not on the MLS but just normal seller, same thing..it all boils down to your relationship that you created from first phone call. When you've done that relationship and presence part well, and you tell the L.A. you'll take the deal and you are putting down, for example $1k or $5k or 5%, close in 10 days with only title contingency...they follow your lead..because they "feel" good about you. If they are worried and tell you only for 20%, you can respond in a nice way 'look I understand you want to see 20% so you know this is a real deal. I'm only putting up 5% and a 10 day close with no contingency (unless see above and you need the time to assign)..so run that past your seller and lets move forward, otherwise I'll withdraw my offer and buy something else.' Again..this is all relative to what you are really doing..and if you are really buying for yourself and really intend to close no matter what, then the contract is protecting you anyways and if they come back and refuse you, you can still say 'ok, on this one, we'll do it your way so you know I am real. But next time, you need to take my word or I'll move on...deal?'

Hope something in there helps..again...hard to go deep without better understanding if you are keeping for yourself, wholesaling, or cash is really not cash but private/hard lending.  All of that matters with how you really conduct the negotiations.  The big piece is to get to where you are primarily making offers directly yo the L.A. as that will clean up most of your resistance.

Hi Craig, congratulations...just read your profile and you have the right attitude all around.   You asked this question in the wholesaling forum so we can assume that you mean what to do first in wholesaling...but your profile shows bigger goals.  Starting in wholesaling, as you know, is going to help you develop the negotiation skill sets that you'll use as you progress...so that is great...and you'll develop them without having to risk your capital and credit as you would in other niches to start.  Stepping into a PRO version at BiggerPockets will help.  So will finding someone to help you plan each day the right way so you have the confidence in how each tasks you are doing is fitting into a bigger implementation path that will lead to consistent deals.  Nothing wrong with poking in and out of free sites and forums and asking questions, but at some point, it's best to follow a proven path...otherwise you just don't know what you don't know or what should be asked when and in what best order and so on. (Just like now you are following a curriculum to get your degree...you're not popping in and out of clinics and asking questions to gain knowledge.) Working with someone hands on is also going to speed up your conversations with buyers and sellers as you borrow real confidence as your own.  So, that would be my advice for you now...get plugged in with someone that you feel comfortable working with....and the second part of that...is once you start...don't ever quit!  Good luck...you can do it!

Hi Peter, hang on to that enthusiasm - on a bad day it may be what matters most! I'll give you my perspective, take what you like from it..as it is going to be extremely condensed but you'll see the tips of the icebergs at least. In my version of all this, I like to land on a rehab once I already have a buyer picked out an prequalified and I know where they want to buy and I can walk a deal I have under contract and do a scope of work and upsell the cabinets,floors etc (manage costs) and the potential buyer is excited about moving into a customized new home instead of a used home. This scenario shields you from over/under fixing and you walk into the deal with eyes wide open. This means I would start my marketing now for buyers. I have a wholesale price now, say $10k net over acquisition cost. (That amount is relative, to market - in CA or south Florida, might be $50-100k.) So if I had a cash buyer that wanted the deal, I might consider making the $10k and move on, which can mean avoiding some issues that come with rehabs that even bother experienced folks - let alone blindfolded, first time at bat, right? At the same time, you need to be getting good multiple quotes from contractors with licenses (that you verify) - and they need to include detailed scope of work, PERMITS, blueprints, and timelines. At the same time, if you are not already very familiar with what your ARV is, look at past sales in last 5 months (because rehab might take 30 days minimum), with in .5 miles, +/- 15% square footage, +/- 10 years, about same land size (or adjust). Throw out bottom bad, top extreme, average the rest and that is probably the most $/SF you get for the property from an FHA end buyer...so that is the most it might get through underwriting..the end of the world, standing tall looking good. Your starting price would be above that obviously, but NEVER at or below to start. If you did everything right and retailed it, that number minus your repairs and acquisition will be your profit (or loss). If you lose, don't stop, just get better. If you make something, be thankful and figure out what went right and what could have gone better!

Also, as for getting the offer accepted, here is a perspective..again..just get what you want out of it. On an average week in an average month in an average year, most real deals that come out on MLS (I am assuming this is where you got it - but if not, the advice is still free) are scooped up by the big dawgs and cats within first 48 hours of going on market. Anything left after that will be marginal or worse. If the deal is still around after a week or so, it might be worse and gets worse. Start to ask yourself, why is this deal still available, what do all the people who already do this for a living know that I don't know and so they avoided this deal? If you think you got good answers and proceed, be sure your first offer is so low it gets rejected; if it does not get rejected, you paid too much. If it gets rejected, now you get to work on negotiating. Now is where it's best to already have your buyer list in place and know intimately your costs & ARV before you accept a number just to do it and jump in - otherwise its no longer investing, it's blindfolded baseball. (Some people can afford to play blindfolded baseball and love the thrill because they can afford it - so to each is own - if you don't own a bat and a blindfold already - get the numbers down and buyers in place before next time.)

Hope you got something out of this even though its not exactly what you are asking for.  What you are asking for above is quite a lot actually, so do your best alone or try to partner with someone and do it with them.  Good luck!  Oh, and if you decide to wholesale it, pick your price and send me details, can't promise I'd be interested in it, but I'd look at it. 

Hi Hannah, my opinion is that you first decide what you want.  Are you interested in getting out of holding property and wish to sell it?  If yes, what do you plan to do with those proceeds?  Will that different investment path be as good or better as holding that property longer?  Also, consider the condition of the property, will holding it a few more years mean x thousands of needed updates, for example, how man years are left on the roof and other hardware?   Tough things to consider right?  Then regarding the tenant, money now is better than later if you want to sell - so I'd suggest exhausting all possible avenues with the tenant as far as getting them financed and cashing you out...then if not, are you really going to settle for land contract or instead, let the lease run out and once current tenants are properly, kindly moved out, do a light rehab and get better price?  Knowing your core goals will help you.  A land contract gives you more control than selling with a note - but you also have other risk factors.   Whatever you decide, go pay an attorney to look at it.  IF you keep it as a rental, be sure you are holding and managing it to protect yourself...or if you sell it on terms with financing or land contract, be sure the docs are covering you.   Hope that helps a little.  Good luck!

Hi Melissa..also, we have an email bouncing back under a name of Sheri for the small wholesaling course, is that you?  If so, please email support @ reiwebtools . com so we can verify and update the correct email.

Hi Melissa...I own the site you are asking about...are you sure you are referring to my product?  I do not see a purchase here for Melissa Mann, is it under a different name?   

Hi Gregory....(disclosure, I own the site you are asking about)...just wanted to touch base here and say hi.  BiggerPockets is a great place for info and I do recommend you upgrade to their PRO package.   Feel free to reach out to us at your pace and go over what we do to see if it is what you are seeking.  Either way...good luck on your journey!  You can do it!

Hi Kamran..quick disclosure..I own the site you are referring to.  Please be sure to add us to your buyer list, use Marc[at]REIWebTools.com.  Also, if you have some question about what we do, feel free to reach out anytime.   I also recommend becoming a BiggerPockets PRO holder, they have a lot of great resources and knowledge center here.