REO.s And Short's.. The More Offers We Make The More Deals We Close!!

REO.s And Short's.. The More Offers We Make The More Deals We Close!!

Happy New Years Everyone... i wish you all prosperity and abundance in your ventures and this new year. My question is about making offers on REO's and Short Sales. As we all know the market is saturated with these types of properties. I seek to meet the demand with well thought out solutions that will lead me to closing the deal. So I ask just what exactly should my first offer on these properties be? 50%, 60%, 70% ARV with consideration for repairs and closing? I'm lost on this subject and need to know. I want to make at least five offers a day on long DOM REO properties and I want to keep a strong flow of short sales moving through my pipeline. I don't want all my offer to land on the floor or to be the one that's being ignored. When it goes in with the POF letter, even if it's at just 50% of ARV I want it to be taken seriously. My investing/business strategy depends on it. Please help, If I'm making five offers a day on REO's and taking on all reasonable Short Sale opportunities at what rate of ARV should I be placing my offers so that I can get the best deal and still have my offer looked at and taken seriously? (Lock and Assign or Double Close is my exit.)

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Abundance & Prosperity

http://metroatlantwholesalerealty.com


REO and Short Sale offers

Read over Dean's books on how to work backwards on making offers. Put into consideration repairs, fees, closing costs, etc., and of course your profit. Like the couple does in Florida, they buy low and sell kinda of low. I have purchased 2 SFR's for rental and plan on selling them when the market turns around. I take into consideration the profit when I sell the house and the cash flow during the rental period. If you make the offer too low, many times the bank will not counter. But it is important to realize that the bank will counter an offer unless they think you are totally out of the ballpark. Your offer has to take this into considertion. You can always go up with your offer but never down.
Good Luck!
Bill and Sherry


Get some comps in your area also...

Make sure you know what properties are selling for...check out the rents also. It's a numbers game depending on your area and what you want your profit to be. I know this subject is on threads on this site just search them out...
Barbara