I have really been marinating on Brandon’s LAPS acronym (Leads, Analysis, Proposals, Success) and trying to think about where the bottleneck is in my business. I have recently been wondering if my bottleneck has been lack of bids. I do plenty of looking and analysis. Last week I formulated 5 or 6 offers and my agent only really submitted 1. She told me the others were not realistic.
I just listened to the podcast today with the attorney (Rob??) who went from 1 condo to 300 in a very short time. He mentions in the podcast that he has made upwards of 100 offers per day and expects to lose 90% of the time but the other 10% will be homeruns.
My question is- what are the logistics of that? I mean, how is that even possible? If I told my agent I wanted to start making 100 offers per day she would fire me immediately. I am intrigued by this strategy though, because it’s basically a great way to turn over every rock in your market and really get the best available deal.
But how do you convince your agent to do this? Or do you not even go through a buyers agent but go straight to the selling agent? And then how do the inspections work out? If you make 100 offers a day and 90 of them fail, that means you lock up the other 10 under contract and are in due diligence. Does that mean 10 inspections at $300-$400 a pop?
Just looking for some tactical answers to this strategy from people who have had success with it.
And wondering how your agent didn’t punch you in the face in the process!
To make that many offers each and every day you'd need to have employees/paid workers. Even having 10% accepted seems like an unlikely high number to me. Remember, you'd need to have earnest money for each of these to get into escrow, have inspections etc. To me it would seem a much better allocation of effort to look for off market deals than to be consistently putting in that many offers on MLS properties.
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It takes a real effort to write the contract, presenting and convince the sellers that yours is the best. Agents are being measured how they can utilize their time efficiently and able to achieve their successes.
The same with job applications. Top people might make 1 job application in their life time and through the grapevine they are being offered jobs. Some think they apply every position to increase their chances. Actually they are penalized as spammers. People in the real estate industry know more about you than you think. They will decline to work or help you. Whether it is lender, home owners, auctions site there are thresholds under which they will not process your offer. Suggest you do more research and understand the market and try to make a preemptive offer to win properties.
Quality, not quantity.... there's no winning by doing a 100 offers a day. If you're looking to get 10 accepted, then find 10 real deals and go from there. You're agent isn't really "yours" per say, unless you're able to pay them for that time, 10% acceptance rate isn't going to do that.
But, if you're hell bet on the quantity.... then start calling the listing agent. That'll be your best bet of getting a (from the sounds of it) unrealistic offer accepted. The listing agent will get both ends of the commission and is more willing to work with you.
To put things in perspective and give an example, plenty people on here think it's fine to own more doors at say 200/ea vs half as many at 400 ea. With out getting to far into a specific example, chances are fewer doors at higher amount will be less work than more doors at the lower amount. Apply that logic to your offer criteria...
Originally posted by @Jason DiClemente :
I think that's a little ambitious, and 10% home runs is not possible. Think about that.... He's saying that he buys 10 home run deals a day?!? Realistically, you would probably have to be an agent or have people working for you that do nothing but write offers for you. It would be a logistical nightmare without an army of enployees.
And a financial drain unless you were something like a hedge fund haha.
100 is definitely ambitious, but it could be as easy as changing the address and price on a template and sending it off.
As an agent, I would probably do it for one of my clients that I've done deals with and know is reputable, but I probably wouldn't spend the time doing such a task for a new client unless they were providing me some kind of additional compensation for my time.
It's probably not a good idea to do if you are only looking for one property and don't have the means to commit to going through with most or all of the offers that get accepted.
I make 1 to 2 offers per year, and get 100% of them accepted. What do you think is a better return on your time....wasting tens of thousands of offers that dont get accepted, or simply making a realistic offer and buying the exact properties you want. Im sure plenty on here want to criticize my strategy, but Im probably doing a lot better than those that would.
Originally posted by @Account Closed :
Dont take PODCASTS too seriously.. Its full of egomaniacs who usually dont get down to the nitty gritty. If you can get a NUGGET here and there that applies to you consider yourself a winner.
Its always i did it so you can too. Hard work....yadda yadda yadda. Skill set and brains matter. I dont care how hard you work most of us cant shoot free throws like Stephan Curry.
The podcasts I listen to don't have a bunch of egomaniacs as hosts or guests. They are usually hard-working aspirational people that are immersed in real estate and self-improvement.
Sure, intelligence is a big part of many people's success but skills can be learned. I can't play basketball like Curry but I can shoot free throws like him. I practiced...A LOT. Learners are earners.
I listened to that podcast, he and his partner did 100 offers one day a week, over about 12 hours. They also did it during a time when their area was riddled with foreclosures and low ball cash offers (he funded the first 30 deals through family/friend investment) had a good shot at acceptance. Condos also wouldn’t need as thorough an inspection, and I doubt he paid for one on most properties.
I suspect this was done back in the days of uber hangover inventory.. today not really possible in 95% of the markets in the US.. I was at a Yancy event and thats what he said he did in Vegas in 09 2010 and i could see that.. just template and change address and price.
it would help if you want to do this just get your own license so you can hire a VA to do this for you daily..
Not sure that advice as stated is germane in todays market..
I think that is what networth realty and great westerns bizz model is though..
@Eliot M. Maybe this worked back in 08-10. Every market is different but I really doubt this would work in most markets. I tried a similar model submitting REO offers on a daily basis for around 6 months last year (on a much smaller scale of course) . It didn't work out well. Your best shot might be Estate sales or pre-foreclosures that are very close from being auctioned off. You have to be quick and check the MLS hot sheet daily. If you just shoot offers randomly it's not going to work and it will be a huge waste of time. You can also set up an MLS keyword search on the MLS, eg "needs tlc" "investor special" etc. This will narrow your search and save you time when searching properties on the MLS.
If you still want to submit that many offers without annoying your agent you can fill the contract yourself and have him submit the offer or you can just submit the offer through the listing agent. You should strongly consider getting your license as it will save you a ton of money.
Thanks @Sam Magina for clarifying.
@Kevin Manz and others: I had previously tried to just peruse a certain number of listings daily and reach out directly to the selling agent in order to schedule a viewing. To my disappointment this was unfruitful. I got a lot of weird responses like “let’s meet for coffee to get to know each other first” (talk about a huge waste of time... ma gosh..) the weirdest was when this listing agent wanted me to send over my drivers license first because of “safety reasons”. That was the last straw and that day I got in touch with a buyers agent that I know.
That being said though, she is not the most motivated... and why should she be wasting time with me on cash deals at $100k when she can sell nicer 300k homes 5 miles east or west?
I’m struggling with what to do here... honestly what is the best approach? Find a new buyers agent or go back to directly contacting listing agents?
This truly is a different day and age than it was 3-4 years ago where you could find deals on the mls. It seems like most things are fully valued right now.
The driver's license isn't all that unusual, I am a new agent and the standard office policy is never meet a new client at a property, always meet at the real estate office, or a public place, get a copy or picture of the license so that there is a record of the meeting. It really is a safety issue.
As far as buyer agent goes, perhaps figure out 2 or 3 prospective houses at a time, choose a day of the week where the agent has more availability (don't ask them to go to 3 100k houses on a Saturday afternoon for example, but maybe a Wednesday morning) to let them know you care about their time, show the agent you are serious, be it with your pre-approval letter or proof of downpayment funds. If they aren't interested in being your buyer agent, see if they can recommend a newer agent from their office that has more free time and could use the experience. Then you get the benefit of the agent you know being available for mentoring of the new agent so that key items aren't missed. If you are evaluating the property from an investor view point a buyer agent may not be valuing the property the same way your are so new or experienced doesn't matter much, your really just need someone willing to go to properties with you and put in offers.
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