I'm local to Knoxville, and am looking to purchase my first rental in the Knoxville market. I'm looking at properties on MLS, because if my only access right now. The market here is such that it's hard to cashflow unless I'm offering 20% below asking on MLS properties. I found a couple of properties that sat on the marketing for close to a year. The couple of (buyer) realtors I've worked with seem to be very reluctant to make a 70-80% asking offer. They became slow to respond after seeing my offer amount, and it has limited my ability to make offers.
I would like to make some deals that makes sense from cash flow perspective, and not count on appreciation on a market that has passed its pre-recession peak.
What strategies have my fellow BPers employ to get realtors engaged? And/or ways to get offers through.
Best strategy for you and them is to only make offers that are realistic to the seller otherwise you are just wasting your own and your Realtors time. It's ok to analyze properties and not make an offer because the numbers are too far off, you can also ask agents if your expectations are realistic, if they are then great you will probably find a property that works for you; if not you may have to adjust your expectations or you will likely have a more difficult time getting sellers to accept an offer.
I’m my opinion, it would be better to go straight to the sellers agent to make the offer. They are bound by law to take any and all offer to the seller. I wouldn’t listen to nay sayers about making low offers, you’re not going to get a deal unless you make offers.
On another note, you should come to the bigger pockets meet up I’m hosting Nov. 30th at Barleys here in Knoxville. Hope to see you there.
I'll plan to come to the 11/30 meeting at Barley's at 6:30 PM. See you there.
@Ming Ming Liu Although the market in Knoxville is competitive, there are still good opportunities for both flippers and the buy and hold investor. However, @Aaron K. is giving good advice about adjusting your expectations.
There is a new YouTube video on the housing market in Knoxville - Real Estate Investing: Simply Not Enough Houses - It will give you a good overview of why the Knox Metro Area is getting stronger and help explain the reluctance a Realtor has in making a low offer.
If you want to meet with many other rental property investors, there is a 2 Day Multifamily Mastery workshop this coming weekend, Nov 11-12, in Knoxville. It is hosted by @Gino Barbaro and his partner #Jake Stenziano. The information is on their website JakeandGino and KnoxREIA. They are stars here on Bigger Pockets, and have one of the top real estate podcasts.
Also, the topic at next week's Knoxville Real Estate Investor Meeting is about Wholesaling and Finding Deals in This Market.
In addition, there is also a real estate networking group meeting at Mimi's Cafe - They have a Meetup page.
Ming, your strategy should be to show them a clear plan of what you want to do and how it will benefit them. As long as your a long term partner, anyone will see the benefit if it’s mutual. Just be patient and stick to your needs, and make sure you fill theirs as well. May take a while to find the right one, but you’ll find them.
Hope that helps.
@Ming Ming Liu I am not sure what you are looking for but I have a newer house I will be selling soon. 4710 Plum St in town. 2 bedroom, 1 bath. All new laminate flooring, new paint, new roof, new light fixtures, newer windows nice big corner lot, will have new HVAC soon. $69,900. I would assume it would rent for $850/month. You can PM if interested.
Seems like lots of properties in Knoxville that need some rehab work so I would imagine if you hunt you can find something as well. Good luck.