OfflineThis is from a So Cal REI board...
What is going on with this market?
Seems like all the REOs have disappeared. Same time last year (when I wasn't very serious) there was tons of REO inventory. Now, these same houses are popping up with minor cosmetic work, staging and fancy photography for $100-150k more. Literally, the same homes I looked at a year ago. No REOs to be found, at all. Inventory seems drastically reduced compared to even 6 months ago here in LA.
Checked out a house on Sunday that had been listed for 7 days. Went to call the broker this morning and realized it was missing from the MLS and RedFin. Found the ad on Zillow, called the broker. He said that he pulled the listing as he had 30 offers. All 30 were 1) all cash and 2) no contingencies. The real kicker? All were at least $50k above asking and he predicted that it would sell for $100k above asking. Freakn' speculators, at it again.
You mean you didn't offer 50% off list. With subject to my partners approval and finance escape clauses with $100 earnest due at closing?? Maybe if you do that 25 times you will get an offer accepted.
In all seriousness, find out who the buyers are. Are they owner/occupants? If so you are offering on the wrong houses. Are they flippers? Buy and hold investors? Making money in real estate does not require getting the properties dirt cheap. Just $5,000 to $10,000 less than buyers will pay.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Here's another post from that thread from a realtor in San Diego...
"Nando, I'll tell you what's going on with this market: supply and demand.
Supply: keeps going down (I saw stats for San Diego that said inventory has dropped every week for about 12 weeks straight). Demand: Thousands of investors who hear the news reports that housing has "finally turned around," plus untold numbers of seminar/boot camp graduates dreaming of making big bucks flipping homes, lol
Here's my personal experience (shared by other agents who list fixers). I listed a major cash-only fixer last month at $399k. It needed around $150k in repairs, so this wasn't for beginners. At my first open house, more than *80* investors showed up. My phone was ringing almost non-stop (even though MLS instructions said not to call). E-mail was blowing up. Another 20+ investors showed up at second open house. I required that all offers have no contingencies, and made them sign a counter stating they had gone inside & done their inspections (I signed in everyone at the open house, all 100+ people, and cross-checked with offers to make sure they'd actually been to the property). I got 18 offers. Am closing tomorrow morning more than $100k above list price.
Repeat after me: supply and demand."
So in this environment you don't need a buyer's list, you need a deal. If you find one deal, you'll end up with a killer buyer's list. As they say, all real estate is local.
and everyone needs shelter and food
As YOU see Now setting on the sidelines don't make you money.
Keep moving forward, its NOT over yet.
As MM said above:
'Making money in real estate does not require getting the properties dirt cheap. Just $5,000 to $10,000 less than buyers will pay.'
Mike
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
I'm in Santa Barbara but actually in invest in Vermont where I grew up and it's much cheaper.
The market here in SB and my understanding of SoCal in general is that it's heating up pretty quickly over the past few months, so what you posted doesn't surprise me at all. Entry level properties are getting multiple offers within a few days around here now!
- Tom
WELCOME to my crazy world of investing here in Southern CA. Take the influx of new investors overpaying and reduced inventory= mayhem. Excellent opportunity to find deals under the radar and wholesale.
If everyone here is offering more than asking than we should be able to get more than asking in all your rehabs, as long as you use the 25:1.
Like Dean said, Adjust what your doing and sell to all the Spectators. THe spectators don't know what we know about real estate investing. they are all paying to much. so we can profit from spectators in this market!!!!!