Low Ball Offers Post COVID

[Tia Wilson]

Hello everybody. I know yall busy so I'll be brief. Houston RE has slowed down slightly but its still HOT. I'm a BRRRR newbie looking for my 2nd property but im having a hard time getting my offers accepted due to low offers. Fixer uppers are listed for dang near market value and they won't accept a penny less. Im shook bc folks are buying them! Most HML are only lending 70-75%ARV so im factoring that and the extensive rehab cost when making my offers. Ex. PP-$129K, ARV $160K and repairs needed is $30-$40K. HML will give me $112-$120K for purchase and rehab. I had to give a low ball offer. Since my budget is limited my fixer uppers need some serious work. I understand I have to be patient but wanted to make sure im not making a bad name for myself with these low ball offers.

How are the VETS navigating this post COVID RE Market? Thanks yall.

[Gabe G.]

Hello @Tia Wilson

Very good question. Houston is a huge market, so you likely are not making a bad name for yourself, (unless you are your own agent) but you may be wasting your time. Once a deal hits the MLS in this market, it is likely getting bid up by investors who are NOT looking to Brrr the property. Focus your attention on building as many relationships with wholesalers as you possibly can. These properties are still competitive, but you will likely have a much greater chance of having an offer accepted.

Good luck!