OfflineThis email took place this morning.
Edit to add-Or maybe we should just do it anyway to show her that it can work here or anywhere for that matter.
Now that I have been doing some more homework I have a better idea on what I would like to do but I need to ask you some more questions if you don't mind.
Are you willing to work with new investors and have you worked with investors in the past?
Have you ever handled an assignment of contract?
Are you willing to make low offers?
I probably got ahead of myself when we first talked about what I would like to look for but now I have a better understanding of what I would like to do. It's called a 25/1 program and has worked great for this bottom market. I would like to make low offers of 30% to 50% off FMV in the valley and surrounding areas. Any offers that do get accepted I would like to assign another buyer and make a small profit for finding the killer deal and make it win-win for everyone involved. I know this might sound crazy but it does work and I have talked to people that are doing it everwhere with great success. So basically out of 25 low offers chances are that at least 1 will get accepted in this market. If you would be willing to do something like this let me know and I can give you some info on what type of properties I am looking for.
Thanks again,
Her response,
I have handled an assignment before. Yes, I have worked with investors..as for the low offers, it does work if the market allows. Here in the Valley we are still getting multiple offers on properties and the sales to list price is only off by about $5000. for lower priced homes ($150K and below ) We do not have a lot of sellers that can take that much less since they have mortgages to pay off and are not in financial trouble. If they are in trouble, then there is a short sale to deal with, which can take 6-8 months, but I don't have a problem with that. That will probably get you nowhere here, but will work in a bad market, I just don't know of any market that is like that in our sales area. I know it has worked in Las Vegas and such...but not here.
I am willing to make a low offer, but only if I know that the seller is motivated to sell. the problem is we are not seeing such motivation here.
What do you guys think.
I have had this same thing happen to me over the last month or so. I currently have a realtor that I am on the fence about.
All of the realtors here say some of the identical things to me. I am in what is still considered a good market nationally. Subsequently, I dont think these agents are motivated to work in the 25:1 market as you and I are.
Having said that, I believe most of these folks are just plain lazy or have plenty of work already and are not interested. I cant tell you how many properties that I have looked at, taken my 20+ yrs of construction experience to evaluate, and double check comps and area average $ per sq. ft. and time on the market, and come up with the fact that the TRUE FMV of some of these roughed up properties IS IN FACT 40 to 50% of area FMV. Most of these disinterested folks look at sf $'s and if a house is messed up or rough, they feel they have done due dilligence to mark that property down below market value, even though it has no bearing whatsoever on the real dollars or effort involved to bring that property to actual FMV for the area. They are realtors, NOT qualified construction estimating experts. So take that for what it is.
My only suggestion is to find one that has done something like this before, or at least already has investors doing what your attempting to do.
Conversely, if your going to go after properties at 40 to 50% of FMV and are in an area that is still kinda hot, like mine is, you should target properties that are roughed up enough so that anyone with any common sense could take an onsite look at that property and be hard pressed to disagree that it is going to take a monumental effort to get that property back to where it needs to be. Then, have a plan of action of how you intend to do just that. That's my plan and it is getting some attention.
Stan
When one sets out to take Rome, TAKE ROME!
Greatness courts failure.