I'm trying a new tactic where I am going to text the listing agent a low, all-cash offer on distressed properties that I find on the MLS. I am going to generate my offer price based on ARV and work backwards from there (repair costs, etc).
Has anyone tried a strategy like this, and what was their rate of success? I'm assuming it will take quite a while to get a good lead this way, and I'm interested to hear of anyone who has had any turnout using this strategy.
It depends how hot is your market? If it's anything like the ones we are flipping in I would estimate your success rate at around 0 percent lol. Not to discourage you but we put in nothing but all cash offers everyday and usually don't even get a response because they want highest and best and no offers for first 7 days etc. In hot markets realtors have to incentive to sell low for cash even on highly distressed assets.
Yes, the market is pretty hot right now. I'm also targeting properties that have been sitting for around for 30+ days, and am hoping to find more success there. We'll see. Currently, the distressed properties listed on the MLS are way overpriced, which is probably why there are some that have been sitting around for a while...
I think you'd be wasting your time. In many cases the listing agent doesn't really know what the seller will accept. They collect the offers and break them down for the seller based on a number of factors (purchase price, financing and/or proof of funds, deposit, contract contingencies, closing date, etc). Do you really expect them to make an appointment with the seller or asset manager to sit down and discuss your text message?
A text is not an offer.
As a broker/agent, until I have a signed offer in hand with proof of funds, there's nothing to discuss. If you get a response at all, it will likely be "email me a signed written offer with proof of funds and I'll present it to the seller".
Okay, let’s say I submit official offers to the listing agents at the price that works from my calculations. Does anyone do this on a regular basis and have they had any success?