How to make my offer stand out?

Question

I have had a hell of a time getting anything under contact lately and my 2 crews are almost done with 2 of my recent projects and I have know where to send them.

My wife recently got her real estate licence and she has been making all my offers but so far 6 strike outs.

We are almost always going in above asking - no contingencies - cash (hard money) - 21 day close date. But I continue to get the message "seller has decided to go with another offer".

These properties are all bank owned junkers for the most part. Is there anything more aggressive (aside from higher offer) that I should be doing? I checked the history and one of the properties I didn't get actually had a lower accepted offer then mine by 2K - what gives?

Are there a lot of "relationship deals" going on out there where agents do deals with the same investors? Do banks typically care how fast you close - thinking of changing it to 15 days which we can normally do.

Alex Huang · Answer

Not sure if it is applicable to the question here but some people who use the HUD as a resource for finding properties have written about some tips and tricks to winning bids. IIRC, a key piece was that they were able to bid a higher NET offer due to their circumstances and, at the end of the day, that's the only number the banks are looking at.

Brian Pulaski · Answer

@Adam Craig I feel it wouldn't matter, because I'm not sure the REO agent has any say in whose offer is accepted. They simply pass offers to the bank who makes the call. That is my theory anyway.

In my area (new to me) houses are simply selling for significantly more than I could ever make profit with. I just saw one the other day, listed at $94k. Busy road, no great qualities and a MESS. I honestly didn't even go in (basement windows blown out and the basement was a moldy mess). Just a few days on the market and the house hasn't multiple offers and will probably go over asking. There are tons of houses like this I have seen.

Adam Craig · Answer

Forgot to ask - why would it not matter if she gave up her side of the commission. Would the REO agent not receive her cut?

Adam Craig · Answer

I had similar situations where I came in at full ask on a property listed for 60+ days and they decided to go with another offer. I feel like something fishy goes on sometimes.

What about HUD homes for you? I used to get HUD homes often and now they never get past the exclusive period unless its in the ghetto. I spend all this time monitoring to see when the bid will open to investors and they always extend it until it goes under contract.

Brian Pulaski · Answer

Sounds like the same position I am in. I am probably up around 10-12 offers (I submitted one today actually) and each and every house I lose. The only ones I question are ones that have been active for months, and after I submit my offer they go best and final and I lose out. I wonder if they sit on a house until an offer comes in, and then when it does a phone call and a more connected investor makes sure to up his offer slightly over mine and I lose.

As far as making an offer stand out, with REO I'm not sure the listing agent has much say. I'd say have your wife forfeit her side of the commission but in an REO I don't think it matters.

I'm not really sure there is much stronger offer than cash, close asap, no contingency.