Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
This is kind of a duplicate of an earlier post. I hope others will share. My properties were in Williamson County Texas which has a fairly high foreclosure rate considering how well Texas has been weathering the recession.
My last deal:
Duetsche Bank Jan 2011
Original list 99k
List 89k
DOM 90+
Bid 74, Bank countered 79,
agreed on 77 but negotiated 10k off because slab sloped so 67k, 10k in fix up (didn't fix slab as minor) and rented for 1000 month
Deal 2 July 2010
HUD list 160k, bid 139k the first day it went to investor bid and was the only bid. (8k Tax credit had expired) Bid accepted. $300 fix up and rented for 1175 per month--in 10 days. Currently rented for 1325. 15 year note with Chase at 4.5% with 25% down.
I want to hear about some low offers that got accepted!!
Closing today on a property that is in pretty good shape compared to what I normally see and buy. It started at $300,000 which was wishful thinking on the banks part. The arv is around $350,000. After 30 DOM they dropped the list price to 275 and then to 255. I offered 235. The banks realtor came back and said the lowest the bank would ever go was 245. He stated the bank would rather sit on it. I held firm at 235. Got a call 2 weeks later asking me to resubmit my offer for $235,000. House needs $35,000-$40,000. House already has new windows, nice landscaping and a new roof. The old owner took care of the place. We start work on it this Friday.
Based on my numbers, the average purchase price to list price from this thread is around 73.06%. Great thread.
I just submitted one today for $42,000 on a $67,000 listing.
Going forward, could you guys please post what bank it was as well?
Danny
Just to screw with Danny's numbers... house I closed on last week was listed at $69k, I got it for $72k :) Expecting it to rent for about $1,400 a month so I'm happy!
Ha ha, same here Nathan. My last purchase was listed at 85K and I bid on it sight unseen the first day it was on the market full price. Only spent 6k getting it ready and I'm renting it for $1350 a month. Had it appraised a few months back for 130k!!!
This might be off topic, but how are you guys getting these? I can't seem to get anything under contract. I've put in numerous bids but can't get a counter.
Are you guys upping the EM or removing the option period?
I offer $20,000 EMD and pay cash for the properties. We list closing in 30 days. We go in with zero contingencies.
If you are serious about the property why not put the $$ in the EMD?
Jim, do you mean you waive your inspection period?
I just looked at two Fannie Mae 3bedroom homes, $79,000 and $103,000. I was wondering how low I should make an offer. Both homes are in decent condition. The $103,000 home only needed few upgrades. This is great looking at everyone's list price vs. the sales price on these REOs.
1. Listed at $85K with multiple offers. Submitted highest and best of $80K and got it. Rehab about $20K (plus an extra $130 for the speeding ticket I got driving to the house the first time) with an ARV of about $140K.
2. Listed at $75K. Offered $65K with due diligence period as there were a lot of weird things going on with this one. Offer accepted and due diligence indicated an extra $10K of work over and above what was expected. Asked the bank for a $10K reduction in price, they offered $5K and we rejected it. They are still considering the $10K reduction (I'm guessing they're waiting to see if they get any offers this weekend), and if so, purchase price will be $55K. Rehab is $50K and ARV is about $150K.
3. Listed at $57K. Offered $51K and negotiated to $53K. Needs about $4K in work to rent for $925 or about $12K in work to resell for $90K.
This might be off topic, but how are you guys getting these? I can't seem to get anything under contract. I've put in numerous bids but can't get a counter.
Are you guys upping the EM or removing the option period?
I offer $20,000 EMD and pay cash for the properties. We list closing in 30 days. We go in with zero contingencies.
If you are serious about the property why not put the $$ in the EMD?
Jim, do you mean you waive your inspection period?
I go in with zero contingencies. I make the offer after I walk thru the properties and feel comfortable in buying them. Worst case I can bail when the bank sends the addendum and just not return it. They will give up and move on. I have never done that though.
A buddy submits 10 offers at a time and then does his initial inspection after he hears something positive back from the bank. That's a little bit too living on the edge for me but he has been very successful.
A buddy submits 10 offers at a time and then does his initial inspection after he hears something positive back from the bank. That's a little bit too living on the edge for me but he has been very successful.
Jim, by "initial inspection" do you mean initial walk through? Or has he seen the property already and is having an inspection by a RE inspector?
A buddy submits 10 offers at a time and then does his initial inspection after he hears something positive back from the bank. That's a little bit too living on the edge for me but he has been very successful.
Jim, by "initial inspection" do you mean initial walk through? Or has he seen the property already and is having an inspection by a RE inspector?
My buddy bids first and looks 2nd if the bank response is positive. I look and then bid.
Neither of us use RE inspectors. We do it ourselves. 90% of what the inspectors look at are thing we don't care about ie. working appliances, leaking toilets, rubbing doors, etc.
Roof is fairly obvious, we check for mold in basements and signs of settling and foundation issues. We both end up gutting kitchens, water heaters, baths, all flooring, etc so the minor things don't really matter. I usually budget between $40,000 to $55,000 for a rehab.