OfflineThis is my first time posting, I have lurked for a while, gathering info and enjoying everyones posts. I recently came across a realtor's website while on craigslist, and she lists all the reo and forclosures in my area. I contacted her about two MF properties, wanting to know what they were currently renting and leasing for and what the status of the properties were here is the reply I got.
"One is a short sale (forget it) waste of my time and yours...I can explain short sales if you don't know about them. The second one has an offer in progress on it already. Banks won't take low ball offers on foreclosures anymore. The market
has changed drastically over the last 6 months. I guess I would have to discuss what you mean by low offers. They are now pricing them to sell and getting multiple offers on them."
Has anyone found this to be a true statement or even somewhat true? I am in Minneapols, I know there is at least one couple on here from there if not more. Would like to hear what you all have to say.
Cathy B
Follow my progress at:
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WHAT IS A MF PROPERTY ?
THANKS
WALT
I would say find another agent. That one seems to have some issue's. Unless she/he works for the bank and is the decision maker on the property, I don't know how they can tell you what the bank will accept or not.
Walt, a MF is multi family property.
Congratulations for jumping into the action with a post today. Bank owned REOs are moving in some areas and not moving as quickly in others. I find that in the midwest they are not moving as quickly. One example would be an REO I had on my radar. They started it at $119,900 about 6 months ago. I believe it was only worth about $125k. They lowered it to $95k and I offered $50k. Just last week they accepted an offer of $75k. So I believe banks are willing to deal, it just depends what you want to offer compared to FMV. My advice would be to get a feel of what the market is doing in your area and try to find the best deals and make lower offers. Good luck with REI. Believe and Achieve!
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An MF property is a multi family property.
whurndon
THANKS B. C. AND WILLIAM
WILLIAM I'M IN NATCHEZ MISSISSIPPI WHAT PART OF LA. R U IN ?
Joe, I hear what you are saying. And it's hit or miss with the offers. That's why Matts 25:1 works I guess. If you had to offer on the above property over again, do you think 75k would have been worth it? I mean it was still 40% off of your FMV price that you had come up with. Are you still hitting on some at the 60% off of FMV?
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Definitely get another realtor, but there is some truth in what she is saying. I talked about this in another thread, but I will repeat here. In some areas of the country (I live in CA) there is a shortage of inventory. So, you will see multiple offers put in on one house. I kid you not a realtor told me that they received 65 offers on one house, so the bank said stop accepting offers. Did they receive 65 offers because it was a fabulous deal... no way! The house was a cosmetic fixer and was priced at 98% FMV. FMV was approximately 115k. So why were there so many offers? Because people want CA real estate. At 110k you can hold and cashflow the property. Right now inventory is short on those kind of deals. So, if you don't have a realtor giving you pocket listings or you aren't getting your offer in within the same day... forget it. The investors already see it and the excessive offers begin. Take joy in knowing that the moratorium ends in September. Come October you will have a flood of foreclosures again. Low ball offers once again will be acceptable. Until then, I would look for properties that have been on at least 120 days or more. Have your realtor do a property history check. That will tell you if the property has been under escrow, but fell out. Banks that have a house that keeps falling out of escrow may take your low ball offer if you can offer all cash and they know they don't have to rely on financing.
KimmyJ
What did your realtor mean by "the market has changed drastically in the past 6 months?"
Anyone clarify this for me please?
"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain
Market (real estate) can change when listings are selling quicker than when new inventory coming onto the market resulting in a shortage therefore price goes up with demand. Or prices can drop even further when no inventory is selling in a certain area(metro) or region of country, resulting in a surplus of inventory.
Anyone clarify this for me please?
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
I got serious about contacting realtors mid May to make offers and 3 in the same week told me they would not make offers below list because BPO's (Brokers Price Opinions) were listing properties 80% of Fair market to cause bidding of multiple offers. Of course every property will not recieve multiple offers but those that realtors are interested in will, therefore higher commissions, less work and closed deals.....good for them, keeps me searching...
my Realtor told me the same thing it is almost imposable to get in on reo:s and pre,foreclosures and foreclosures right now but it has to happen. they have way to many on there hands and they are just playing a game right now hoping things will change for there benefit. so as i have seen on this site, lets wait till sep. oct. and hope the gates will open for us new investors..
good luck to all and any thoughts would be appreciated
bob & sandy (topaz solution's inc.)
robert a sanfilippo
I don't think we should be waiting, I'm just looking for a different realtor. Putting in the offers can't hurt all they can do is say no.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Find a realtor who is not afraid to put in your offers. The more you put in the better your chances. Don't let someone else decide what course you should take. Be the captian of your ship, not a passenger. Good luck on your deals, it will happen.
hillvalley
I'm brand new to the forum. Please excuse my ignorance but what happens in "sep. oct." that will make properties easy to get?
Hello there I also live in Minneapolis and I would agree with the idea to find another agent. A real estate agent is supposed to be working for YOU and if they aren't with what you're doing, next! Keep taking action and don't even let the negative stuff get into your mind. What you think about, you become. So when a realtor tells you something won't work, don't even accept that as an answer, but move on! Keep on going!
Everything comes to him who hustles while he waits.
Thomas A. Edison
Be not the slave of your own past. Plunge into the sublime seas, dive deep and swim far, so you shall come back with self-respect, with new power, with an advanced experience that shall explain and overlook the old.
Ralph Waldo Emerson
anyone know what happens in "sep. oct." that will make properties easy to get?
I bought Dean's book a year ago and than bought his other book just a few months ago and have read through it and am reading it again. This is my question: Everyone on this site exactly step by step how did you get started. What I want to do is wholesaling. I just want to find aproperty and get it under contract and give to an investor but I am having trouble finding an investor. Or also getting a finders fee. Now I have a list of properties that are in foreclosure and have given them to an investor but so far he is saying that he has had no luck with any of them.
Is there a contract or something to give the investor for the finder's fee? Just want to make sure that he isn't getting this information and giving it to someone else and making money from it?
Also I put in another post about ads. Does anyone have a good ad they are using to get investors.
I am in Michigan and the same story is here also. There is such demand for the low prices that it creates a bidding war and drives the prices up. It really is a bidding war with investors. I closed on my forclosure last week and had bid 15K over the list and the property is still under FMV and while I was not top bidder, my net out (I took no concessions) was a stronger bid. I guess the test is to see if the Realtor is willing to still offer your bid regardless of their advice because after all they are working for you and if you lose out on some deals because of it, then at least you know you tried, and you know if it is the truth. Good luck!
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