OfflineMy agent has sent me over 300 properties. I want to make 100 offers. I have only seen these properties on the computer. In the past, I was making offers based on my visitation to the property and determining what the repair estimate would be. The agent would then send me the comparables for one property at a time and I'd calculate my offer. I want to take it a step further and make multiple offers each month. What is the best way to do this with 100 offers? Do I continue to look at each of the 100 properties as I was doing and calculate the repair costs? Does the agent send me 100 comparables for each of the 100 properties?
Thank you for your experienced and helpful suggestions.
Greg
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Hi, Greg!
I would suggest starting out by adding a few more offers each week so as to not "exhaust" one REA. You can build up your offers gradually each week to about 25 per week. You may want to enlist more than one [investor-friendly] agent to help accomplish your multi-offer goal. I would NOT view every property! Simply run your numbers based on the MLS photos of a given property. You can have your agent take some pix if none are available. You can also view similar [retail-priced] homes from a site like Zillow.com to compare; get a good idea to compare against. You'll have time during your inspection period to physically inspect the property. At that time, you can have your buyer swing by or take him along with you. Repairs are an estimate; often a guesstimate. Be confident in your numbers, and so, your offers. If you're wholesaling, talk to your end buyers to see what level of rehab they plan to do; expect. Plan your repair budget accordingly. Buy what THEY want. (There's no sense to buying 2/1s if they're looking for 3/2/2s, for example). Also, check DG.com for cbrpower or crbpower (Matt Larson threads) for his strategy of the 25:1 offers.
PS. You can get comparable sales data from Trulia.com and FindCompsNow.com
Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
• "To every thing there is a season, & a time to every purpose..." ~Ecclesiastes 3:1-8
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Hi Greg,
Streamline the process if you are looking at that many homes, you want to get your offers out there quicker and then look at only the ones you get under contract. Have agent pull only the houses the meet your criteria and make offer on all of them. The quick formula to you is easy:
Example:
ARV: $100,000.00
.70 of ARV: $70,000.00 (this includes investors profit and all transaction fee cost)
Rehab: $10,000.00
Your Profit: $2,500.00
Max Offer: $57,500.00
- 10% flex for starting offer: $51,750.00
After you look at the houses when you get them in your control then you can go back and negotiate the numbers based on your initial inspection. Always remember to put in all of your contracts the 15 day inspection clause.
Hope this helps.
Thanks,
Shah
Shah Had input
I do just want to add
To get a ratio like 25:1
You got to be making offers on "A" listings
There are three qualities in "A" listings
1. Condition 2. Motivation 3. Vacant
So you want to see in the listings it has all three "A" listing qualities.
so for examples some terms you may find for these
1. Condition: "as is", handyman special, needs TLC etc
2. Motivation: Price reduced, motivated seller, bring all offers, that the DOM (days on Market) is 90+ etc.
3. Vacant: REO's, Estate sales etc.
Finding listings that have all 3 qualities are "A" listings and will have the 25:1 ratio.