6 lowball-offer errors home buyers make

Interesting read, I will keep that in mind when making offers.
Thanks!

RENinja

thanks Bill!

6 great points to take into consideration even as investors! In the end, it all comes down to doing our due dilligence, and not just throwing out a low number and hoping it will get accepted...

Learning and progressing every day,
Val

Great article with some important suggestions & things to consider for those thinking about lowballing.Acually it at a very good time for me as I'am about to make my first offer on a property I would really like to get(more details when it happens!)Happy monday to everyone!

I'll call FBI/ATF and see if I cant get your signature returned!!

I hope ppl here see what you're trying to say by providing this article- all in all, I think that too many ppl try and rely on this 65% of arv, minus repairs, etc instead making an educated offer and end up wasting the time of everyone involved with low-ball offers.

I can understand REagents/Realtors telling new investors NO to the 25:1 offers concept. Some are just lazy and satisfied with making $85k yr. Some dont know.
90% of the agents do 10% of the deals.= $85k yr
10% of REagents/Realtors do 90% of the deals= top producers $200k+ yr easy

Most of the new comers have no assets, funding or even enough knowledge or education or experience to attempt this level of investing and/or be taken seriously.

Every property is different,period. There is NO cookie cutter approach!

As for the 25:1 offers and the 65% of arv, minus repairs, etc., lets say YOU are the seller, and you have someone make the offer, I'll give you $46k for your house that youre asking $100k for...what would YOU say?? NO, NO, and NO, even 25 times.

I'm not trying to tell everyone you cant get/find deals, because they are out there,but you have to be a little more realistic in offers and approach.

And, for those of you that think youre going to do 3 rehabs/remodels a month, let me tell you from experience, that is NOT going to happen. A few yrs down the road after youve done some deals and have a STRONG team of rehab/remodel contractors, you may TRY it,but its not as easy as you may think. Its VERY stressful, aggravating and youll want to pull your hair out.

Well I don't do the 65 I do 70% because most investors want 30% equity on the deal but even 65 is doable. I think you might be confused. If the listing price is 100k and the ARV is 120k then 120k*.65 less say normal cosmetic of I donno 12k = 66k less 5k profit you offer them 61k. If they want 100k tell them to fix it up themselves deal with the holding costs while it is vacant and the risk of it being vandalized and have some realization it will sit there for a while like 3-4months minimum and longer if overprice due to repairs when people can just go down the street and find a foreclosure for 50k let them know THAT is their competition not some other neighbor down the street who spent a few months fixing up their house and sold it full price for 100-120k.

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