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Updated over 6 years ago on . Most recent reply

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115
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Nat Rojas
  • Rental Property Investor
  • Elkridge, MD
40
Votes |
115
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Process Improvement: Submit 100 Offers before or After Comps?

Nat Rojas
  • Rental Property Investor
  • Elkridge, MD
Posted

Hi BP Team!

TLDR: Submit Offers after I receive Comps or submit offer, get accepted then during due diligence phase review comps and other due diligence activities?

Starting out and looking to continue to improve my process. In @Brandon Turner's Webinar last week he offered this process: 1. Leads 2. Analysis 3. Offer 4. Buy. 

I currently analyze deals everyday using my spreadsheet. If the cashflow is >$100 (Expenses includes: 10% Property Manager, 5% Capex, 5% Repairs, etc) then I move property to next phase.

I planned to request comps from a real estate agent to move forward, but I then heard the mantra: "Submit 100 Offers, get 10 accepted, buy 1." Should I wait for all the comps to submit offers or modify the list price to where my numbers work (per the webinar) and then immediately submit the offer.

Any assistance or wisdom is greatly appreciated! I love process improvement and want to continue analyzing many deals day after day. Thanks in advance!

Most Popular Reply

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1,384
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3,263
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Frank Wong
  • Real Estate Broker
  • Bay Area
3,263
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1,384
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Frank Wong
  • Real Estate Broker
  • Bay Area
Replied

Hi Nathanael,

I would never submit anything unless I review the comps first. Unless I worked with a buyer before I would never submit an offer for them unless the buyer reviewed the CMA I provided.

Submit 100 get 10 accepted and buy 1 is amateur in my opinion and lots of wasted time.  I submit 10, 3 get accepted I buy 3 unless something drastic comes up in the inspection.  It's never about value.  I know once I submit the offer I know what its worth.  BTW I buy SFRs.

If you want to take your investing game to the next level. Don't rely on the agent's comps. Do your own research and get to a level in which you know the values. All I do is ask the agent to show me the house. If you know what the ARV will be and there is a lot of equity the rest of the numbers will fall in line. ARV first in my opinion and everything 2nd.

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