I JUST SUBMITTED 100 OFFERS IN ONE DAY!!! I MUST BE NUTS!!!

I JUST SUBMITTED 100 OFFERS IN ONE DAY!!! I MUST BE NUTS!!!

What do you do when 27 offers get rejected? You keep submitting right? After my last 27 offers got rejected, I figured I need to step up my game.

My realtor sent me about 150 properties in the criteria that I asked for. Well, I figured no sense in running after all 150, so I chose the 2/3 route LOL. I spent until 2 am last night picking 100 properties that I would like to put offers on. This morning I called my agent and told her that I am emailing her the list of 100 properties. She told me that I am either way too confident or way too crazy. I told her that I am both (which I am). Basically, since I have no job now (got fired on Friday) and 2 small kids to support, I need to move quick. No sense in holding back now.

The 100 properties are not all REOs, about 20 of them are. Regardless, I told my agent to put the bids in for 50% off ASKING PRICE. I told her that I don't expect her to do it all in writing, since it will take her until end of next year. She will try do as much as she can verbally and we take it from there.

So, to recap, I put in 100 offers today. I have no end buyer or investor to assign them to yet. I am having her put in the clause that I have 30-45 days to close. Hopefully it will work.

Wish me luck! If it works, I will buy Dean lunch Smiling

Come to think of it, I must be crazy putting in so many offers without an end buyer. What do you guys think?

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


walk-thru of how to

I do believe that this reply IS the beginning of a great start for me as a first time investor. Aside from reading halfway through Dean G's book and being ramped up and ready to go, but being a bit fearful, this one posting(of many) has ignited that fuse inside of me to get that ball rolling at full throttle and letting nothing stop it(not even adversity). Thanks for this bit of inspiration!


MaximillionAlpha

The funny thing is when I read these posts about me being an inspiration, it makes me more inspired.

Good luck. If you need my help in any way, feel free to ask.

Yuri

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


Newbie Just Starting Today

Yuri,

I just read the entire thread regarding your 100 offers and I must reiterate what everyone else has said...YOU ARE AN INSPIRATION!!! I'm a newbie, just starting Dean's Real Estate Success Academy today in Chicago, and while I am so SCARED, your thread has definitely inspired me to get out there and just do it!!!

I appreciate so much that you've shared this experience with us all and I wish you much success in your REI and your new REI club.

Raven

PS I love TEQUILA, so I'll definitely stop by your liquor store when I'm in PA!


Yuri, make another offer fast :)

Yuri,

The important thing is you took action and made the 100 offers. That is a great start. I am willing to bet some of those homes you made an offer on will come around. Also, you may want to consider making another offer if any sellers counter-offered your first offer. It is a numbers game. Dean and Matt Larson have proven over and over again that persistance pays off. Good luck with your future deals and business opportunities. Believe and Achieve! Smiling

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Indiana-Joe

Noone countered. As I told my agent, she needs to work on her approach. I don't mind them coming back with a number, as long as I start a dialogue. These just blew me off.
But, like I said. So far all in all, I got 127 offers rejected. I enlisted 6 more agents and have them call the same properties offering 50% below asking price as well. This way, maybe I can full the sellers to give in, or at least start talking. LOL

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


Raven

Are you in Chicago itself or the outskirts?

I have a friend living in downtown chicago. Let me know what you are planning to do, we might partner up. As far as being inspired by me. All this game is -- numbers. Keep at it and you will succeed. Have you found a good agent yet?

Yuri

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


I don't know if this will help...

Hi Yuri. I don't know if this will help, but we were getting completely blown off, too, until our realtor tried something new. She has attached a cover letter with each of our offers that goes something like this:

"Please consider this offer a serious one. I realize the offer price is significantly below asking price, but it is not intended to be offensive. The buyer is a serious, long-term investor who intends to improve the property and flip it for a profit. Therefore, he must obtain the property at a certain price point. I would appreciate it if you would consider this offer seriously and submit a response in writing in order for me to communicate your response to the buyer. Thank you, Mrs.Realtor"

Every week she would get angry phone calls and listing agents calling to tell her that they wouldn't even submit this offensively low offer. We never heard ANYTHING back on any of our offers, other than this type of anger!! Then, last week she attached the cover letter, and out of the 10 offers we submitted, we have already gotten 2 counters. And she said she didn't get a single angry phone call.

Also, I don't know about your area, but where we are, most REO's are already listed below FMV, so to offer 50% off the asking price may be as much as 70% off FMV. For each offer we submit I get comps and calculate the FMV and then we offer 50% off that number.

I hope this helps. I think that the manner in which the offer is submitted is ALMOST as important as how much it is submitted for. Our first realtor submitted our offers apologetically (she would say, "I'm sorry that this offer is so low, but don't blame me! I'm just the messenger!") and we were not taken seriously at all.

Good luck and keep us updated!! Smiling

__________________

Cool Go confidently in the direction of your dreams. -- Henry David Thoreau


Great Cover Letter Idea 5 H

Great Cover Letter Idea 5 H. I will have to add that to the arsenal. I also agree that the way the other agent was apologizing was affecting the outcome.

5H Enterprises wrote:
Hi Yuri. I don't know if this will help, but we were getting completely blown off, too, until our realtor tried something new. She has attached a cover letter with each of our offers that goes something like this:

"Please consider this offer a serious one. I realize the offer price is significantly below asking price, but it is not intended to be offensive. The buyer is a serious, long-term investor who intends to improve the property and flip it for a profit. Therefore, he must obtain the property at a certain price point. I would appreciate it if you would consider this offer seriously and submit a response in writing in order for me to communicate your response to the buyer. Thank you, Mrs.Realtor"

I hope this helps. I think that the manner in which the offer is submitted is ALMOST as important as how much it is submitted for. Our first realtor submitted our offers apologetically (she would say, "I'm sorry that this offer is so low, but don't blame me! I'm just the messenger!") and we were not taken seriously at all.

Good luck and keep us updated!! Smiling


Thanks

I am so greatful for everyone hear on the forums. I get inspired and it keeps me going. Thank you very much for your post on the cover letters and providing another way for us to get our offers accepted... at least looked at. God Bless you all


I am a newbie

Just want to say how informative many of these posts are. I am brand new trying to get my first deal done. I am a part of the the school and have gone over many of the courses. I know once I get my foot in the door with 1 deal I will be excited to kick the door in. I am in the NY/northern NJ area. I am looking to get going on no out of pocket money. 2 questions I have right now are: The most effective ways to form buyers list? I have been posting on CL and all my responses seem to be with other investors. Does anyone know of any good hard money lenders in the area? I look forward to continue learning through all of the great responses.

Dave
The Quest Investment Group LLC
dshaw643@verizon.net


Dom and Kim

Thanks for that cover. My agent was trying to do everything on the phone. Now she calls me and says "what now?" So I told her I will type up exact course of action and will email her. By the way, what did you do for the proof of funds?

Yuri

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


Proof of Funds

You're welcome, Yuri. Hopefully the cover letter will make a difference for all of us! Smiling We print off a POF from Coastal Funding and submit with every offer. A couple banks have requested an actual bank statement -- the POF letter was insufficient. We told them that we are investors, using Hard Money to purchase the home with cash and that the letter WAS our proof. But it seems that those banks have rejected our offers. So the Coastal letter apparently won't work for all banks, but it's good enough for some!!

__________________

Cool Go confidently in the direction of your dreams. -- Henry David Thoreau


HELP PLS

I made my first offer yesterday 261k cash on a 2 family with 190k outstanding and apprised at 322k. The owner just closed on another house. My question is did I go to low?


Incubatingink

If you learned anything from my posts there is no such thing as too low. You are an investor. Low-balling is the game. From what I see, it is not too low, but I don't know all the details to be 100% sure. You will know if it is too low if or when your offer gets accepted or countered. I think it should be accepted with no problems.

Yuri

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


Dom and Kim

Thanks for the infor guys. Read about you getting everything done and almost at the finish line. Congrats. You are celebrating anniversary as well? Perfect timing huh? Happy anniversary and many more happy year and deals together.

Yuri

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


Thank you Yuri!!

It is good timing! We are praying everything goes smoothly!

__________________

Cool Go confidently in the direction of your dreams. -- Henry David Thoreau


Thanks Yuri

I live in the north east New Jersey were home price trend to the high side. There are killer deals out there I know it. You have me convinced I am going to get an agent and kick it up. You really give me the confidences that this will work thank you for your time.


Incubatingink

Make sure your agent understands everything that is needed from him/her. Just be upfront with them. That way, you can eliminate the lazy ones.

Glad I could help. If you need any help, feel free to ask.

Yuri

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


Hello everybody. Has anybody

Hello everybody. Has anybody had any offer accepeted in southern Ca 50% off asking price? Just curious because I'm having a really tough time getting any accepted. Does anybody have any pointers?


Corgiat

The only advice I can offer is that you may want to run comps on properties you are interested in and offer 50% off FMV. In our area (Southern CA), most REO's are already listed below FMV, so if you offer 50% asking, it may be as low as 35-40% FMV. We have adjusted our strategy in this way, and we have been having a lot more interest in our offers. Good luck!!

__________________

Cool Go confidently in the direction of your dreams. -- Henry David Thoreau


Kim and Dom,

5H Enterprises wrote:
You're welcome, Yuri. Hopefully the cover letter will make a difference for all of us! Smiling We print off a POF from Coastal Funding and submit with every offer. A couple banks have requested an actual bank statement -- the POF letter was insufficient. We told them that we are investors, using Hard Money to purchase the home with cash and that the letter WAS our proof. But it seems that those banks have rejected our offers. So the Coastal letter apparently won't work for all banks, but it's good enough for some!!

Hi Guys,

For the record, which banks have you found to reject the Coastal Funding POF letter?
You have found banks that will accept? Which ones are they?
Thanks Angela


Hi Yuri

Were these verbal offers? The reason I ask is because my realtor although she says she will make as many offers as I need her to until something sticks, she only wants to make written offers i.e purchase agreements. She says that a nobody will take me serious offering 60% FMV with verbal offers. I am not comfortable signing 25+ purchase agreements because what if they all get accepted (not likely but you see my point). So at this point I am slowly and painfully offering one at a time, waiting for the answer, and then either countering or moving to the next property.

Thanks,
Jonathan

__________________

Carpe Diem!


Angela

Hi Angela. I don't know which banks have said no to the POF letters. Our realtor keeps track of them for us. There were 2 different banks that wanted bank statements as proof. Sorry, I didn't really keep track of it. Just moved along to the next offers!!! Smiling Out of the nearly 100 offers we have out, only 2 have not accepted the Coastal Funding POF letters, though.

__________________

Cool Go confidently in the direction of your dreams. -- Henry David Thoreau


Hi Jonathan

This is just my opinion, but I don't think you should worry about one offer at a time. Matt's strategy is for every 25 offers submitted, on average 1 will be accepted. In our experience, it's more like 1 for every 50 offers.

Also, I disagree with your Realtor that nobody will take you seriously with 60% FMV. We had an offer accepted at 53% FMV and we have several counters on our 50% FMV offers. Don't let a negative Realtor discourage you. Lots of people (in our experience) LOVE to tell you what banks DON'T like and what they WON'T do. We have learned to ignore those negative comments. NOBODY knows what each bank is willing to do on each property until they try. Put those offers in and SEE WHAT HAPPENS. If you put in 25 offers and ALL 25 offers are accepted...what a WONDERFUL problem to have!!! Smiling You always have your inspection contingencies to get you out of the ones you can't assign.

Good luck to you. We look forward to hearing about your upcoming success.

Dominic and Kim

__________________

Cool Go confidently in the direction of your dreams. -- Henry David Thoreau


Thanks Dominic and Kim

Thanks for your advice. So you submit written agreements as well?

My problem is I let the Realtor get into my head. She is excited and anxious to get this project started but repeatedly tells me to be cautious because she has seen people sued over assignments i.e breech of contract. Especially in todays economy when people are struggling to make ends meet.

So I believe I am going to take my purchase agreement with my contingencies to a lawyer and make sure they are solid before proceeding on. Has anyone had to use their contingencies to back out of a contract before? Any problems?

However I am not going to let this stop me and I look forward in becoming an active member in this wonderful community and sharing my experiences with everyone.

Thanks again for your advice and I hope to hear from you soon.

Jonathan

__________________

Carpe Diem!


mckenzierei

Your realtor will give up that idea really fast. My realtor wanted to write all the offers first too. She did because we are jsut starting. Moving forward, it will be all verbal. Let your realtor do what she/he feels comfortable doing. Sign what you have to sign, he/she is doing most of the work. Besides, after the round of making 20-30 written offers at a time -- would you rather call or write them and get rejected? Exactly!!!

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


5H

Thanks for the advice. What I do is offer 50% what ever they are asking. Only two where REO's. Thanks again. I will let you know how it goes.

Rick


The rest of the story

OK-Yuri-Bold move. I read through many of the postings. I could not see if any of your offers were accepted? Hope so!


Leaving us hanging

Yuri,
I think that many of us want to see how you did. I have to believe that you had a few offers accepted?

Erik


A little advice

Every time you get an offer accepted you have to put an escrow deposit down. It seems like all of these are on the MLS since you got them from a real estate agent. Once the offer gets accepted they usually want $1000 down in escrow or they won't accept it. The only way around this is to negotiate the offer and say that you will put the escrow deposit down after the 10 day inspection period is up. Most of the time they will do that for you. This will give you 10 days to market and sell it. Then when you find a buyer, they put down the escrow deposit. If you need more time after that then you will need to put the escrow deposit down your self and pray that you can sell it. Because if you don't it's hard to back out of a contract after the inspection period is up. Even if it's assignable. If you don't find some one to assign it to then your liable. If it's an REO bank owned, then those can't be assigned to someone and they almost always want the escrow deposit right away in order to accept an offer. I hope this helps out a little bit, you don't want to overwhelm yourself just in case a lot of them get accepted.


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