One problem I am having is not making enough offers on properties to rehab.I haven't clicked just yet with a broker, so getting around to see properties and being able to make lots of offers on them has hindered my growth.
I have considered getting my license but the timing isn't right.
Here's a partial solution and would like to get some feedback.I would like to start targeting houses I come across on the MLS that fit my criteria.Once I find the houses,send a letter directly to the owners with a cash offer low enough in my mind that should cover most if not all repairs,along with the expected holding costs and final numbers as they pertain to a good deal.The letter would emphasize a fast closing with the inspection as the only contingency.Obviously,I would do as much due diligence before hand on home styles I am most comfortable and familiar with.If the seller is interested in my low offer,he would have the real estate agent call me and set up a showing.Once I see the house with a contractor,at that point I can state we'll go into contract or pass.
I have tried to make offers before where the agent refused to make it for me.This way,I know the owner will see it.I will make many offers in this fashion and wont have to keep going through the frustrating process of waiting on an agent.
Thoughts to this approach?
My first thought is, you're not going to make any friends with these agents if you're contacting the owner behind their back, even if you have good intentions to have the owner then give it to their agent. Agents can get very "butt hurt" over things like these.
Patrick Reagan an agent refusing to submit an offer you want to make should not be there decision as to if sellers will or will not accept it. I do beeline it is actually illegal to decline you from making an offer. A good agent should advise you why or why not your offer makes sense but they should not tell you they are not submitting your offer. Many agents do not like to low ball offers because they see it as a waste of time and foolishly do not see opportunity.
You idea of mailing out to the MLS home brings up a major concern. You are setting yourself up to work with the sellers agent which has a fiduciary obligations to the seller. Something I see a lot in RE is clients wanting to contact the listing agent, in this circumstance you are creating a legal conflict of interest called dual agency. I would advise working with an agent that is investor friendly and when the time is right will negotiate on your behalf.
Find a young eager RE agent who wants clients and has time on their hands and have them submit all the low-ball offers. If you're only going to use the MLS anyway you may as well have your own agent submitting offers.
Why don't you just make offers without seeing the property. The odds of them accepting your first offer are slim and none, so you wouldn't be wasting peoples times by putting properties in contract without buying. If they counter with something you think you could work with, go see the place.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.