All Forum Posts by: Justin S.

Courtney-

You need to provide more information. Repair costs, exit strategy, and please do not use zillow for comps. Get better comps from an agent or a title company. By your numbers, you'll need to do a shortsale. If the house next door sold for $128,500 why are you only offering $127,900?

I've noticed it slowing down. I was talking with another investor about this and his thoughts were that people are hoping the bailout plans help them so they are not responding to letters as much.

I also put holiday stickers on the outside of the envelope.

I was not a fan of click2mail either. Slow, slow, slow.

Hey Bob-

I'm a newbie like you but you'll need to learn to do the estimates yourself. Right now, I'm submitting offers without looking at the properties. If the we get close on negotiations, then I call up my realtor and say I want to look through it. My opinion is for you spend your time submitting offers on lots of properties instead of trying to look at each one. I was doing what you were doing spending all my weekends looking at properties. Last month I found an agent who submits tons of offers for me and I'm closing my first deal at the beginning of April. Its just like finding motivated sellers but with banks. Put offers in on properties that have been sitting a while on the market. I have never recieved a first time rejection, they always counter. If the agent tells you your offers are too low, then find a new agent.

The best education I have found is teaming up with a mentor. I found a mentor on bigger pockets and learned more than any book or education seminar. I'm not saying books and education are not valuable, but a good mentor is a lot better. I've bought two "self help" items that are sitting nicely on my shelf collecting dust...

It's true. I sat in on the call today.

Hi Joe-

I'm new to investing in REO's like you. What you need is a good realtor that will submit your offers for you even if they are low. If you are looking to move a lot of properties, I wouldn't even view the properties until negotations are close. My initial offer is 50-60% of fair market value minus carpet and paint (I estimate based on sq. footage). I've submitted over 20 offers last week, and not a single one was out rejected all received counters. Two are looking good so far, their counter was in the ballpark. I submit offers on properties over 180 days on market. We've automated the process so filling out the contracts is simple.

Jon-

Thank you for the reply. My initial offer was $76K so I will stand pat with them and try to negotiate. Looks like my first deal will have to wait....

Thanks for the advice.

I'm a newbie and need advice on a deal.

Exit Strategy: Wholesale
House Details-
Year Built 1979
Sq. Ft = 1829
3 Bed/2Bath
Property is in a rental neighborhood. House has a tenant paying $1000/month but the homeowner is being foreclosed on. House has a converted garage into a living space so that accounts for 400-500 of the square footage. Other properties in the neighborhood are between 1000-1200 square feet. Tenants know the property is being foreclosed on and would like to stay if possible. Hoouse could use some fixup, but its mostly cosmetic.

My purchase price would be $121,000 ($66/ft^2). My wholesale price would be $128,000 ($69/ft^2). Taxes are $1064. No HOA.

BPO came in at $140,000 and but bank said they need to net $121,000. Houses forecloses in early April.

Three other houses for sale on the block (all around 1100 sq.ft) are at $83/ft^2 (average). Lowest is $73/ft^2.

Last two houses that sold averaged $115/ft^2 which is hard for me to jusify for the FMV of the subject property. All other comps are banks buying property back at auction.

The extra square footage based on converted garage, I think, inflate the value of the property which makes me nervous about doing the deal.

What does everyone think?