Responses from our bandit signs.

We put out 3 offers and no luck. All three sellers were wanting retail value, so we told them that their best luck would be to list with an agent and to be patient. None of the sellers were motivated, so on we go for more offers. We are three closer to our first one!

If there are any DG pros out there, I am curious what you would offer on these properties. I'm not sure if our math is right.

First property is: 2841 SW 49th ST in Oklahoma City, OK 73119--asking price is $55K cash, home is partially rehabed, but needs an AC condenser and the kitchen and bath need work. 980 sq feet and 3 bedrooms and 1 bathroom.
We offered $20K cash, owner was unhappy with us.

Second property, 2440 SW 31st, OKC, OK 73119, home is in good condition according to seller, she owns outright and just gained ownership in December of last year from a rent to own deal. 2 beds, 1 bath, 890 sq feet. asking price was $26,000, we figured we would need to offer $6500.

Third property is 714 SE 20th OKC, OK 73129 2 bed, 1 bath, 1008 sq ft. Good condition, but needs a little work according to seller. Her asking price is $35,000, we figured we would need to offer $6,000 to make a deal.

My overall analysis according to my feedback from sellers and according to the smaller margins that I calculated in for myself is that we need to go to a different area and think bigger and get closer to $100,000 homes. The houses in this area are cheap even at full price, so if we go biggger, there is more room to move around and more money to be made. I would love for someone a little more experienced to run these numbers and tell me if I'm on the right track. Thank you!

Whats the ARV on all three properties?

*update* did a totalview on the first property its worth according to totalview: $56,031

and he's asking 55K? doesn't sound like there's a lot to play with, but again I would do your due diligence if you haven't already to get the true ARV.

It sounds like to me that they're not motivated enough (and have made up their mind that they want retail price). I would honestly thank them for their time and if they ever want to make a deal in the future to keep you in mind. Then move on to another deal.

Who knows, maybe they'll come back and work out an agreement with you!

They were $56,350 for the first

$30,260 for the 2nd and $28,896 for the 3rd.

the 3rd sounds like she's offering too much for it...did you show her the comps in the area? I think you're doing fine though, its just that they're not motivated enough. Hopefully they can work out an agreement in the future if you decide to work with them again.

Did you think about doing lease options on these properties that want retail? Did you explain your reasoning behind the offers, comparing them to reos in the neighborhood that didn't need any work, you could get them for cheaper. Sometimes it helps!

I feel like we are on the right track, I just like to be validated. Thanks for looking at it for me. You are right, they just aren't motivated. Funny thing about the first guy is that there is still a lot of work to be done and he wants full market value for his house. He needs a freaking air condensor for crying out loud. I don't know much, but I think that's a few grand right there.

The first guy didn't give me the chance, he cut me off and asked what my offer was, so I told him and he said "have a nice day!" and hung up. That made me chuckle. Now that I'm really thinking about it, I will probably call him back in a month or so. He won't be selling that place anytime soon. He is also an investor and bought the place to flip.

The other two offers I did explain and they were much nicer to me. Neither were motivated enough. Can you tell me more about the lease option? I'm not sure I understand where that would've come into play.

so its a partial rehab right now? He wan't full retail value? The property is worth 56K!

According to sold comps, I see one that sold for 45K, 40K, 42K. I think he might be asking too much.

I agree, have backup offers! I hope it works out, and I think you're doing just fine.

Do you have Dean's books? Also I would do a search here at dg.com for "lease options." it will tell you the process and what it truly is.

Lease options work in any market

Thanks, Just plan-e! I thought about that all day today & yesterday. Snadwhich Lease Option woudlda worked with any of those sellers, had the "investor" been a little more understanding & receptive. It doesn't sound kike he was the "investor" you are familiar with. It where you lease the house with an option to buy in a period of time, except you do it twice when you find a tenant buyer. That way, you make $ in the beginning, middle and the end of the transaction.

click my username, click track, and click 'my maximum offer worksheet'

to LOW of an offer will KILL any deal, leaving you with nothing but wasted time and an upset seller who will tell everyone what they think of you

I just looked at your Max Offer Sheet..If you just take off 15% from the top that should cover commission closing stuff like that..Then you can start with Repairs..Unless Im wrong

thanks for posting those offers...

it helps to see things from another angle and to see what others are getting and offering.

Thanks

Susan,

Great story and I LMAO at the drug testing message...LOL. Just wanted to say that I am absolutely digging the Bandit Signs myself!! This is my second weekend out with my signs. The firat weekend I made my own from board purchased from Staples and wood stakes from Home depot stapled together!! It worked but they were a little small... I got 6 calls from 25 signs of which one call is a real gem!! (Still working it). This weekend with my big bright yellow signwarehouse.com signs I felt really professional...LOL. I put out 25 signs last night at all the usual intersections, mostly the walmarts in town! I have gotten 6 calls so far, I missed two, got back to 5 of which one is a diamond in the rough at first glance. Will be inspecting this week.

You said it Susan...Man Do those Bandit Signs Work...The Best Bang for your Buck I say!!

Best wishes DG'ers

The Princeadhola

I guess it really matters where in the country you are using the signs. This is the second week and weekend that my signs have been up and I haven't gotten l legitimate call at all. I placed my signs at all the grocery stores and the walmart that service my area of interest plus the neighborhoods that are in my buyer's price ranges. I've covered every exit from the parking lots and both ends of the main streets in to and out of the neighborhoods. I must be living in an area that only knows about listing with an agent. Count your blessings that you are getting responses.
I will keep trying tho because I definitely get nothing if I do nothing.

Andy Sager
DG's AndyS

Hand written with a black permanent sharpie with a wide tip, Yellow color, 18x24 signs should work well. Remember to keep the lines to a minimum of 3, maybe 4. People traveling at certain speeds need to see these signs and if they can't read it within so many secs., it won't work. You don't have to put the area code on there, just your 7 digit phone number ~ that way it will feel like a local number & you will get more calls because it looks like you are a normal seller. If your number is out of state or in same state with a different area code, you can use the number with the area code. I just prefer the shorter you are to the point, the better when it comes to bandit signs.

Actually, I WOULD ALWAYS put your area code. If you live in an area where many people from different locations within the same state or other states travel (such as where I live), you would be missing a LOT of calls because they won't always know what that area code is. What if you don't live in the same area code as the area you put up the signs, but where you live is still considered local to that area? There are some cities that are close to an area code split, or even divided by one. Not putting your area code on the sign would be a big problem for people trying to call you. Where I put my signs (574 area code) is still considered close enough to be local to a dividing line on the West side of Indiana for La Porte County (219 area code). People live in La Porte, IN and work in South Bend, IN (only 25 min from each other). They would try calling your La Porte phone number with the South Bend area code, and get the wrong person or incorrect number message. Do you see where this could cause a potential problem? Also, what if someone from any other area code (including out of state) is trying to buy from you, or wants to sell from their area? So many possibilities missed here, because they didn't know the correct full 10-digit number.

Just my advise. Do what you wish, but I really think you should give serious thought to putting your area code on the sign. Not everyone looking at your signs are local, or will assume to know what area code you live in to make the correct call. They have enough time to write the area code. Trust me.

It makes sense, though, to use your area code.

I agree that you should ALWAYS put the area code. There have been so many times when I have seen signs of different types posted and I was interested in calling but NO AREA CODE.

Often, I was in an area that was not my normal stomping grounds and had no idea what the area code would be.

I vote put the area code!

I have to agree... put the area code in!
If you live in an area such as mine, you get a lot of seasonal visitors and seasonal residents. They may not always know what area code to call. Why make them guess? Make it as easy as possible. The BIG key is to make the number HIGHLY VISIBLE and EASY to remember.

Just my 2 cents...

Andy Sager
DG's AndyS

Always valuable information on this board. Things one may overlook. Thanks for sharing!!