OfflineI have been submitting literally 100 offers per month and I have been having a lot of success in two different areas-out of town owners and banks. First of all the area I have been investing in is trending upward. Values are steadily rising. So my only logic is this-the out of state owners are letting properties go cheap because of the media reports in their area not the area where their property is for sale. The two properties I have bought recently from out of town owners were bought the first week they were listed at between 50% and 70% of PRESENT value! One I am renting out and the other I am going to flip. The bank foreclosures I have been buying have also been going very well. I like to pick on them because they are not attached to the homes and they are not offended by the low offers. Here is what I have found...foreclosures in my area are usually listed at about 90% of actual value if they are in good shape, so I have been offering 20%-30% below that price. I am finding out that in almost every case an 80% offer is getting accepted without hesitation, except for HUD homes and I can always buy those for guaranteed 93% of listed value. What is cool is that this is the best time of the year for a seller to sell, so if you get a steal right now you know it is only going to get better within a couple of months when schools starts again. My advice is this "start bullying these banks around!"
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
When I first read this, I thought you were taking poor bankers lunch money or something!
But this is some good advice. I've been pretty aggressive with my banker too.
"Give me money!"
"No."
"Ok."
But I'm getting better. Thanks for the advice.
This is great advice.
My question to you is "Do you have any tips on finding the out of town owners or did you just happen to come across them?"
Thanks.
CBR. Yeah the REO's around me are listed for 90-95% of FMV. I always offer 70-75%....no counters yet!
Don't Wish the Past, Create the Future! - DH
Information on out of town owners can be found from the tax records located in the county tax assessors office. Most tax assessors have put a weath of information regarding property ownership on the county assessors web site. Google the assessors office for your county and play around with it a little. See what you can find out.
James, I know the feeling! I really have to be more agressive too.
I have been to several different banks to find out what kind of lending they can offer. They have become really strict about making sure the buyer puts his fair share into it so the buyers have an incentive to make the mortgage payments. When I ask them about the owner carrying the loan for the 30 percent they pretty much tell me heck no! I'm going to try to use the reverse though and use the bank for a 30 - 40% down and see if the owner will carry the rest. Any thoughts?
Roni
I'm curious to what the banks said exactly, as I will be looking into a similar situation. They don't want to give you 70% even if the owner carries 30%?
Rina
P.S. Maybe we have to be "Bank Bullies" like cbr said. lol
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
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You may need more mental posture. What I mean by that is this. When I go to the bank I don't ask for money. I give them an opportunity to loan me money. There is a huge difference.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!