Offlinehey all - been offline for a bit. have been putting in hundreds of hours and numerous offers - to date no deal. But today I am especially depressed because while waiting for the call for my realtor on a deal I thought was a slam dunk - instead I had to walk. Heres how it went. Keep in mind we are talking about an empty, uninsulated, bank owned 2br 1ba bungalow with an after repair value of 150,000 and needing 10-15,000 in repairs. Asking price 124,000. My first offer - 90,000 cash. Their counter 114,700. My counter 95,000. They came back today at 114,500!!! I told my realtor to tell them the cash just walked. I mean really - what do I have to do to get a deal around here? It was going to be my first rental income property. Geez I was soooooo excited, and now soooooooo low. Dont you think they should have taken my money and run??????
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Laura,
Not sure where you are at. Could it be that the banks don't feel the market is bad enough in your area to warrant selling at such a low price.
I have no idea, like I said, I'm just a newbie. But things like this make me think twice and wonder if my own venture won't turn out the same way!!!
Jack
Counter again! My realtor says to give it 3 times. that's what the banks are used to. It might not make a difference, but as long as they don't come back "rejected" do it again.
Also, how long had it been on the market? If they reject now, keep watching it and offer again if it drops. I know you said your market is not as slow as other places, but keep your eye on all the ones that have been rejected. Watch and offer again!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Counter again. I think it will be beneficial for you to continue counter offering.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I agree... Counter again!!! Don't let that bring you down, there are deals out there, we just have to find them;-) Just keep trying.
Set a goal to achieve something that is so big, so exhilarating that it excites you and scares you at the same time. It must be a goal that is so appealing, so much in line with your spiritual core that you can't get it out of your mind. If you do not get chills when you set a goal, you're not setting big enough goals." (BO Sundberg)
Vicky Diaz
I can't believe you are letting them win. You are trying too hard. You care too much! This stuff is systematic and UNEMOTIONAL. Here is what I want you to do. Have your real estate agent pull everything that has sold in your area in the last 30 days. Find out what the asking price/sales price ratio is. Find out what is the average days on market is. Find out what type of properties are selling. Put together some data.
In some areas of the country investors and first time home buyers only focus on foreclosures. You may have to avoid them if the competition is too fierce. Just because other people are buying them does not mean it is a good deal. Only 40% of the properties I buy are foreclosures. The reason is this. I call the shots. I am the one in control and I make the decisions. I don't like banks and they don't like me. They think they make the rules until they meet me. Let me give you an example. This just happened about 4 hours ago. I got a call from my real estate agent. My offer was accepted on a foreclosure under the circumstance that I would close on March 13th. My offer was 50% below FMV. This is a STEAL! I called my agent and told her I would not close on the 13th but I would close on the 20th. She called them and told them that and they told her that if I couldn't close on the 13th then the deal was off because there were several more people in line that were putting in offers much higher than mine. (Now I could have folded here and gave in, but that goes against everything I believe in-I RUFUSE TO BE BULLIED AROUND IN LIFE-I CALL THE SHOTS) I told her to call back Countrywide Bank and tell them not only will we close on the 20th but if they pull this deal from me then I will refi out of every single Countrywide mortgage I own and I will never do business with them again, plus I will call the person's manager at Countrywide to let them know what kind of business decisions are being made by that person. Guess what...we are closing on the 20th like I wanted. I stood my ground. I didn't care if I got this deal. Who really cares. That isn't the point. The point is I have the confidence to get what I want. I expect it. I don't hope to get a good deal, I get good deals because I want to get good deals. My point is this. Quit caring so much, find out what is being over looked in your area, and take it. I know you can do it. Be the pioneer in your area.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Firstly - my sincere apologies to Euphrates04 and anyone else I may have discouraged in the tiniest bit by posting my frustrations. DO NOT STOP. I know I never will. I know I can do this and I envision myself successful - I'm just stumbling in finding the right path for me in my area like CBR says. Today I am going straight to my realtor and pull the figures you suggest and review them carefully. I also have my first meeting with the nearest real estate investing club this Saturday. Its a bus tour of available REO's about an hour north of me. We are going to walk through 6 houses, do comps, est. repairs etc. I am looking forward to seeing a different area and meeting other investors for sure! Matt, I'm working so hard and finding so few deals that I can afford to put offers in on that when I finally find one in my price range and it gets away. But I will never loose sight of my success goal and am going to keep learning and trying different avenues until I get there. Thanks again to everyone.
PS: Matt - I feel like I deserve a good scolding from you in April
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Way to go CBR!!!
We all share your frustrations, at least I DO!
We can't give up and we WON'T! I'm armed with all this knowledge and it's hard to not USE it. We get such great support here and can't lose our focus, right? I'm with you, I WON'T STOP EITHER! Let's get 'er done!!!! GO FOR IT!!! YOU CAN DO IT!!!! 
Your little cheeleader,
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
Laura,
Just wanted to let you know that you did not discourage me, I am still sticking with this. Like I've said in other posts, I will not allow this to fail. It's really just that simple!
I do agree that we can not let our doubt or obstacles overpower us. Our doubts and obstacles are enemies, plain and simple. I plan on taking each one down efficiently and without mercy!
Jack
Hey Matt,
Great story, love it! Bottom line it comes down to the numbers and not how you feel emotionally. I always counter until I get an acceptance or a reject...simple as that. This means even if I make a counter it may only be a few hundred bucks just to keep the negotiations open...trust me they are looking at the numbers the same as you are.
P.s. Matt, I Love how you pulled out all the stops with the "close on 20th or I'll re-fi all my props that you hold"! LOL...you go!
Angie
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
Close /Asking$ / Sold$/ DOM / Rooms
2/23/09 279,900 263,000 3 3/1
2/2/09 299,000 280,000 67 3/1
2/27/09 299,900 301,000 36 4/2
2/5/09 319,900 308,000 92 3/1
2/3/09 418,900 401,000 92 4/2
2/26/09 239,000 207,000 20 3/1*
1/27/09 174,900 165,000 44 3/1*
2/27/09 235,000 235,000 173 3/1*
I could go on and on and on. The ones with an * are ones I put offers in on. The others are out of my league right now but you can get the idea. So what can you read from this? Also, just wanted to clear up the fact that I backed out on the most recent counter because if I went any higher the numbers would not work. That is where my emotions came in.
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
WOW! Your Market is Rediculous compared to where I'm at, Just looking at the COMP's you posted tells your area's story.....Now it makes sense why the Bank was "Playing" with you, It definitley looks as if they have other options other than your offers, Thats the problem or at least some of the problem.
The Important Lesson to take away from this is that at least you DID pull out when the Numbers Stopped making sense, It would be easy for an Investor to Just get caught up in a "Bidding Frenzy" with the Market that you seem to have and OVER PAY, But YOU Didn't, GOOD MOVE, SULLY
YOUR HERO, SULLY
Just had to write because I am an ex NYer and last lived in Jersey City going back 7 years ago (I now live in the east bay, CA).
I'm curious as to what part of NJ you are looking at and getting such "tight" #s between the asking and selling prices. Are these all REOs? I am seeing similar situations here in CA re: REOs(bidding wars) and in my area it seems that every other home is under water (housing prices grew obscenely over the past 7 years, hence the situation of all the under water properties).
Look forward to hearing back from you. AND DON"T GIVE UP! You may have to expand your search radius which is what I am doing.....keeping away from the Million $ homes that are under water and driving 20 miles to areas that have loads of REOs with more reasonable price ranges.
Neil
Thanks for responding...it makes me feel a bit better that the numbers show how tough it is here and its not just me screwing up! Looking forward to the home bus tour in a new area saturday with my investment club. Hopefully that will open more doors. Neil - I am an hour south of NYC on the shore - Middletown. Right next to trains, parkway and ferry service. So it is VERY desirable. I think thats a big reason why it still commands the prices. Ah well, I am willing to step outside my comfort zone and invest elsewhere - its just a bit scarier not knowing so called good and bad areas etc.....Just gonna keep at it! Oh yes - the answer to your other question is no, they are not all REOs....but I've been in most of them and they ALL need between 10-50k of work!!! Also wanted to mention that my realtor told me that she has 10 clients scheduled to show houses to over the next 3 days. The buyers are definitely out there around here, and it appears they are mostly first time buyers who are not afraid to do their own work just to own a home. Anything in the 300 range goes in a snap regardless of condition. How can I compete with that as an investor?
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Opps...I re read my quote and wanted to correct my response...
"I always counter until I get an acceptance or a reject...simple as that. This means even if I make a counter it may only be a few hundred bucks just to keep the negotiations open"
I should have said: I do walk when the numbers stop making sense and no longer work...BUT I will play ball with the bank and go up to what makes sense for the numbers. I had and offer in and went up just a few of hundred $. This was after going back and forth 2 or 3 times and got the offer accepted for only $500 more than my last offer. It was thousands less then their counter, it was crazy.
I did however end up dumping the whole deal after the inspections came back. You never now when a couple of hundred will make a difference though:P Good luck!
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
Hi Laurie,
I used to live in East Brunswick, Princeton, etc not too far from you. And yeah, you live in a real nice area right by thr train line, garden state pkwy and you are right near the shore, as you mention, which is very desireable for investors looking for summer props, I believe this is the reason why PRESENT prices of these homes are holding their value.
Maybe look in neighborhoods further away from the shore inland that are less likely to be investor props and for people looking for homes in areas with good school districts, commutable to work (if they work in NY, train line, etc).
Hey, I am new to this game as well so we are all learning together. Keep us all apprised and I will do the same.........I MISS THE SHORE (and Manhattan)!!!
Neil