How many offers are you making each month❓

Question

For those that are actively pursuing deals in this competitive market, how many LOIs are you submitting each month?

-What deals?

-1 or 2?

- 3 to 5 ?

- 10+ ?

Jeffrey Donis · Answer

I agree with @Justin G.. We try to submit LOIs for deals that meet our criteria, and we don't submit LOIs on deals that don't meet our investor's returns. Right now, we're not submitting as many LOIs because a lot of the deals we look at are overpriced. I'd say our KPIs are around 5 LOI for every 100 deals we look at. Right now, everything has high prices and institutional buyers are buying them up. But, we are always hunting for deals.

Bryan Martin · Answer

@Justin G. At this point in my investment journey, 3/2 SFH 1200+ Sq Ft in good school districts.  Very passive investment with the right systems in place even without a property manager and able to charge a premium rent.

I'd eventually like to get into medium to large multifamily, but after all expenses and the current costs, I haven't found one that makes a ton of sense.  In my area, why buy a fourplex at $200k with 4 units that rent for $600/month and have utilities, trash, lawn care to pay for when I could buy a single family for $150k that rents for $1600 and no expenses except PITI, CapEx, Maintenance and very little vacancy.

Charles Seaman · Answer

@Justin G. It varies from month to month, but I submitted 11 LOI's in the month of March.  My goal is to submit as many LOI's as possible.  It helps to let people know that I intend to stay active in the market.

Bryan Martin · Answer

@Justin G. Not as many as others.  I have a Crystal Clear Criteria as Brandon Turner calls it.  If it doesn't meet it, I don't offer on it.  If it does. I make an offer and usually get it.  With interest rates so low right now, I don't mind paying a little extra to make sure I get the property if it's something I want.

Brian Pownall · Answer

2-4 here, agree no point in wasting other's time if you are way off to just check a proverbial box.

Justin Goodin · Answer

For me it’s maybe 1 or 2. We don’t spam out LOIs on deals that do not fit our criteria and we have just a few markets we are focused on at the moment.

Justin Goodin · Answer

@Charles Seaman Thanks for the response. I totally agree with that. My deal flow is not that high and then most of the time my offer is not even close to the asking so it doesn’t make sense to submit.

Justin Goodin · Answer

Right now it is between 3 and 4 a month. Primarily trying to focus on off market deals but am still looking at on market deals. We are trying to find deals built in the 80s and 90s and skipping the older product for now.

Justin Goodin · Answer

@Jeffrey Donis totally agree!

Justin Goodin · Answer

@Bryan Martin it’s a tough market right now. Everyone is having trouble finding deals. I agree the 4 plex properties are expensive. I’m talking more in the 20 unit range. That will be a lot more worth your time with a little more scale. Let me know if I can help.

How many offers are you making each month❓

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