When deals hit mls is that to late for a good deal. I been looking for properties and haven't landed anything at this point. I don't k now if I'm to conservative with my bidding or whats wrong. When I place a bid I use the rule of thumb not to have more than 70% of the most recent comps in my deal. Which include closing on the initial purchase, rehab, commission on the deal if I have to list the property, closing cost for the new buyer and then I assume the lowest recent comp with all variable being the same. But, ever property which has been at least 20 in the past two months hasn't went through. I been using word of mouth to promote my business. Also, I'm having bandit signs and business cards made up. What does it take to make a solid deal any advise please. One last thing, on the statement above properties will bought with cash so there's no holding cost and I know some will argue that you have to consider that money as expense somehow but, I don't.
I always want to deal directly with homeowners and never involve a Realtor.
It sounds like your problem is that you are not doing any marketing. You need to be sending at least 1,000 letters out a month, and putting up 200 bandit signs.
The more marketing you do, the more money you make.
To answer your question about the MLS. All of my deals have been on the MLS. There are different tactics you can use. If I see an excellent deal come on line, I get in to see it right away, but this requires a very good agent who is willing to drop what they are doing and meet with you.
The other route I take is to watch a home online for sometimes months, if I am interested. By this point I already have a price in mind As soon as I see two price drops within weeks of each, I then will go in, inspect and then make an offer.
In either case, do your research before wasting your time going to look at the place. Have a number in mind before you even walk in the door, then add your rehab cost to it and be ready to make the offer then if the numbers add up.
Recently I have lost 2 great deals, because I didn't make an offer on the spot and the other was because my agent was at a family function over the weekend and didn't have a freaking backup. We are still going to have a conversation over that last one and my loyalty.
Yeah, these are thing's I beginning to figure out. A lot times I go look at the home, even though I know the property is over priced. Then I'll place my low ball offer. Obviously this doesn't work. I've began to do the things you've been talking about, waiting for my price point then making the offer. Thanks for the response.