What is your sequence of events on a deal?
Hey all,
Been reading for some time, but first time poster. Brief context, we've owned one rental property since 2014 - though I didn't know it at the time, it was in essence a rehabbed turnkey property. It's been a good overall experience, but not the margins I know now I should be aiming for.
Having said this, as I've learned more about REI, I'm much more interested in the brrrr method as well as maybe a flip here and there. In fact I've made multiple offers in the past few weeks - they were all rejected except one that is in limbo on an REO currently. My question has to do with your all's usual sequence of events, namely when it comes to getting a bid for the rehab:
Scenario A: say it is a lead from a direct mail situation - do you submit an offer first thing once locked into a convo with a seller just based on your general experience of sq ft, ARV, general rehab for the size etc, or do you tell them that your offer price depends on getting a rehab estimate first, meaning you would also ask the seller to get access to the house during negotiations before an official offer is made?
Scenario B: say it's more of a standard situation - do you typically try to bring a contractor out with you during your showing(s) before making an offer, or try to bring contractors out to the property to get multiple bids after a contract is locked in during the "inspection/due diligence period"?
My realtor is fairly experienced with investment properties so he's been helping with estimates, but moving forward I will have to vet out other contractors. The other problem I'm running into is how quickly everything moves, especially from the MLS...all these factors lead to my questions above so I can move as efficiently and wisely as possible.
Thanks for your time,
Tae