OfflineI am always trying to figure out how to get real estate at a cheaper price. The price you pay for a property is absolutly crucial. Knowing that, one of the things I do all the time is get a reduction on the price I offer. Here is what I do. This works almost everytime, come to think of it, it has NEVER failed me. I have even gotten it to work on foreclosures which are bought "as is". Although I have done this at least a dozen times, I will use the most recent one as an example. About 3 weeks ago I had an offer accepted on a bank owned property (foreclosure) for $56,000. The house is in great condition and will probably appraise for around $80,000. So I am getting it at a steal. Most people would probably be happy just to get it that cheap, but not me. I sent in my inspector to do a whole house inspection and we found out some wood needs to be replaced around the foundation. I had another contractor come in and give me an estimate to fix it. His estimate was a whopping $400. SO here is what I did. I called my real estate agent and asked her to revise my offer. I told her "I want to reduce my offer $2500." She said "you can't do that the estimate was only $400!" I told her to submit it anyway and guess what. They agreed! Yes, I bought a foreclosure "as is" and after the offer was accepted got them to reduce it another $2500! I do this almost every time. Why does this work? Because the seller has commited at this point and just wants the property to sell. Don't get greedy, just ask for a small amount. The worst thing that can happen is they say "no" and you can still buy the house at the accepted offer price. This is a great technique. Try it.
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!
Many of us on this site really appreciate your wisdom. On behalf of everyone I have talked to about you, thanks for posting your thoughts and sharing your knowledge. Keep it coming!
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!
67% of FMV..... NICE!
Don't Wish the Past, Create the Future! - DH
Not my best deal but, nothing to scoff at.
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!
Thanks for your trust Troy.
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
and what deal would D be talking about?, did you tell me about this one?, you ALWAYS have so many deals going on that it's a little hard to keep count!
YOUR HERO, SULLY
Thanks CBR. It seems like I have lots to learn from you as well. So, please keep it coming!
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
The property that i talked about above has sold. Apparently, my agent has failed to inform me that the bank's realtor refused my offer. He failed to communicated with me for almost two weeks and i lost the deal. I wanted this house so bad because it's right around the corner from me. At the same time, i wanted to get the property for the 50-60% of ARV.
I had plan B and plan C in mind in case they counter offered. One was to have the realtor turn the power and the water on, do another inspection and then take for what ive offer them which was 42k. Two, if they still won't budge, then i was willing to add another 2k or 3k, but i never had that opportunity because my agent dropped the ball. Guess what, after i gave him a piece of my mind, i told him to loose my number. He's fired! If i didn't call him, i would have never known what's going on.
Two days ago, i found another property, made an offer and i got a phone call yesterday and informed me that it was accepted. I did not use an agent this time, other than the sellers agent. I don't need an agent to do any negotiation for me because i'm the one who's making decision, not the agent. I guess if he would have done his job, i still will be using him today, but i guess things happened for a reason.
Anyway, i just thought i let you know what happened with that property, and i really appreciate sharing your wisdom with all of us. The deal will be closed in two week. I have renter already in place, and according to my numbers, my cash flow would be $168.00 a month.
Purchase price 39,000.00. Thirty years terms @ 6.9% which would put my payment at $257.00, $30.00 for insurance and $45 for taxes equal $332.00. I will pay for closing cost out right which my attorney is taking care of that and propably cost me no more than $1,200.00 The house is fair condition and the couple who currently lives there do not want me (new owner) to do any repairs. They have been living there for almost twenty years, and they are very happy with the way things are. It's a 3 bedrooms, 1.2 bath at 1,400 sq ft.They pay $500.00 per month, not bad huh! Thanks again CBR for your imput and appreciate your expertise.
LL
Congrats on your new purchase!
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!
Now you're on a level playing field! Sometimes you just gotta do it yourself it you want it done right, now that's what I'm talkin about! Way to go!!!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
your doing alright, it's good to hear you succeed, good luck with the property
YOUR HERO, SULLY
Sorry about the first house. Makes you want to use your "skills" on someone, doesn't it? Good thing you've got a kind heart! lol
God bless,
Rina
"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
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Great tips Thanks cbr.
There's plenty of properties out there and you just have to go out there and find it. I've learned that if the agent is not doing his/her job to help you suceed in your REI, then move on to the next one or better yet, you handle it yourself. Good luck to all of you and thanks again for your support!
LL
I have made offers on 3 different properties within the last month. Two of them were for below the list price (I didn't get the house), so on the third, I offered the asking price (I didn't get that one either). These were REO's, single family homes, in lower middle class neighborhoods. I've found that recently that rental homes are at a premium in the North Houston area. I want to start my portfolio, but it's requiring patience on my part.
I would say you need to adjust how many offers you are putting in. I average about 20 offers per week. Most of them get turned down. Only 1 or 2 gets accepted. If I go a week without an offer being accepted it is rare.
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!
Hi CBR,
I got my first NO on my assignment of short sale transaction. The lienholder basically said No to my assignment fee when I was trying to assign the contract to the new buyer. I have had many deals go through thru assignment without any hinderance, and this is the first -- I don't know how to handle this one. Should I move on or fight it?
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
I have a few out of state and now that I want to buy close where I live they are asking for 20% for investment properties.
Am I messing something here?
Thanks for all the info is great.....
Dan
"Don't compare your life with others. You have no idea what you are getting into."
"No compares tu vida con otros. No tienes ni idea de lo que se trata tu travesía."
There are loan programs that allows you to put less money down. Feel free to PM me -- maybe I can help you get in touch with people who would be able to help you.
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
Can you just set up a double closing? Most title companies don't finalize their books until the end of the day. Do a dry closing at the first closing and after the second closing the money needed to close the first will be given to you as a cashiers check.
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!
You are awesome! I will check with my title company and see if this is an option in their branch/company. Always thinking outside of the box....this is why I subscribe to your postings.
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
you can purchase the property within an LLC, then you sell the LLC to your "END BUYER", guaranteed to work!
I will start a new forum topic and show you step by step how to do it(if you would like more info) it will be titled "STEPS IN GETTING AROUND "NON-ASSIGNABLE CONTRACTS"
YOUR HERO, SULLY
When will you launch this new forum topic? Please keep me posted.
I will start a new forum topic and show you step by step how to do it(if you would like more info) it will be titled "STEPS IN GETTING AROUND "NON-ASSIGNABLE CONTRACTS"
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
like magic!, right before your eyes!, lol, just kidding, i posted it like 2 hours ago, the topic name is "how to get around non-assignable contracts"
YOUR HERO, SULLY
I will subscribe to it.
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
Hi,
How are you doing today, Just curious.What state are you in?
Cheers!
I am in Illinois.
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!
Just had another offer accepted and after the inspection was done I asked for a $2000 reduction in price and I got it! It was on a house that I am paying $42,000 for so it turned out to be about 5% off and the house will appraise for around $80,000 after repairs of $5000 are made. The point is that I got an additional $2000 off a house that I am already buying for about half price. Got 'er did!
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!
Good Job Man!
I am putting my strategy together on a certain untapped Market here in California in my immediate environs but,I will be letting you know how it's going. So in your offer to the house, it seems to me like you getting the house for 50c on the dollar.
Kanbee.
I have been calling banks like crazy and they are not lending to stated borrowers. When you first got started did you run into problems like this as well? I own 2 businesses and can't document my income. My fico is in the low 800's and I prefer to stay away from hard money. Would you recommend for now that I just assign everything until I get the 20% down together to go A paper stated non-owner?
Keep me posted on your success. And yes, I like to buy properties at 50 cents on the dollar. I just closed on another house on Friday. I paid $40,500 for it and it is assesed for $80,000 and needs very little rehab. YeaaaaaaHHHHH!
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!