All Forum Posts by: Dustin Beam

Hey Michael!  I've got a great lender here in KC.  I've shopped around a ton and my lender matches the best numbers you'll find - but he's infinitely easier to work with than anyone else I've found.  Shoot me an email at (listed below) and I'll put you two in touch.  

@Dustin Beam only use a RE to SELL, never use one to buy. When you use an agent to buy, you are paying retail. All my homes I own free and clear we’re with a wholesaler, an auction and direct from the bank. Don’t waste time buying with a Realtor.

@Dustin Beam - To echo @Russell Brazil's point and chime in on that discussion: If you don't think your agent knows the market, and you don't trust your agent or value their expertise, why on Earth did you hire that particular agent?

I too have been on both sides of this fence as both an agent and in investor - I've negotiated plenty of offers well below asking, and I've bought and sold plenty of properties well above asking. 

And did you ask your agent to explain why $60k wasn't going to fly? There may be a rock solid reason for it. 

I was in this exact situation recently as a buyer's agent. I had just gotten off the phone with the listing agent of a $550k listing. He told me he had an offer in hand at $455k, which the seller was going to reject outright. 

Even knowing this, my buyer was insisting on making a financed offer at $420k. I told him no - but only because I was certain it would be a waste of everyone's time. 

Not to mention my reputation: "Hello fellow real estate professional...I know you just told me you have an offer for $455k that the seller is rejecting. But here's an offer for $420k which demonstrates 1) I don't trust what you told me, and 2) My buyer doesn't trust me or value my expertise".

You mentioned in your original post that there are a lot of variables to consider. That's certainly true. But you should be discussing these variables with a professional investor-friendly agent you value and trust. As you can see, most of the advice you'll get in here is "fire your agent", which might be ill-advised.

And finally, just to clarify: The tenet of "must present all offers to the seller" generally applies to the listing agent. 

Originally posted by @Dustin Beam:

Originally posted by @Russell Brazil:

Originally posted by @Nicole Heasley Beitenman:

@Russell Brazil His offers are not random. He's made educated calculations. His agent clearly doesn't understand how to work with investors.

 Real estate values are not based on the end sum of an equation. You dont invest by trying to force numbers onto a property, you find the properties that fit the numbers.

You think it's ridiculous to offer $14k below list on a fixer? I have to be misunderstanding your post because you surely aren't suggesting that investors skip negotiation. 

 Every property is completely different. Ive bought properties for up to a quarter million under asking and up to a quarter million over asking.

Sometimes offering under asking is rediculosly low, and sometimes over $100k over list can still be rediculosly low.

I know what a property is going to sell for irrespective of the list price. I also know where I can get that price to. 

But if I hire a professional, who consistently says Im coming in too low, and I dont listen to them, why did I hire a professional anyways? I hired them for their expertise in the market, so why would I ignore that.

Saying a house needs X amount of work so Im going to offer Y below isnt how the market works. There are neighborhoods where a completely dated house sells for the exact same price as a fully remodeled house. So going in and trying to say my equation says its worth this, when the market says other wise js just wasting everyones time. Instead of making fruitless offers, find the neighborhoods where the numbers do work.

Every offer I make on a house, I make with the intention of closing.  Its a complete waste of time making offers you know will get rejected, or you cant get countered to where you need to be.

Here is how an investor and agents relationship for professionals should work. Investor tells agent I need to buy it at X. Do you think we can buy it for X? Agent, no that price is not possible. Investor, ok lets move onto the next one. Or yes it is possible,..ok great whats our sttategy to get to that price.  Throwing out offers if its not possible to get it to that is a waste of everyones time and will ruin your reputation in the market.  You deal with the same people over and over and over again, and maintaining an appearence of professionalism, respect is incredibly important to your ability to continue to do business whether as an agent or investor.  

@Dustin Beam

It sounds like the repairs needed are minor and they are already have that priced in. Going rate is 90-95, needs 8-10 in repairs. So that's mid 80s. Asking 74 is still a good price. 60 sounds low to me but not ridiculously low.

I'd prolly come in a little higher if it were me but I'm not a pro by any means and it's not a total low ball. The agent may know it's a bit too low but he should be able to explain the breakdown better than saying your being ridiculous so it may be time to move on to someone that better suits you

Originally posted by @Nicole Heasley Beitenman:

@Russell Brazil His offers are not random. He's made educated calculations. His agent clearly doesn't understand how to work with investors.

 Real estate values are not based on the end sum of an equation. You dont invest by trying to force numbers onto a property, you find the properties that fit the numbers.