Bill and Frank rent a boat and go fishing. They catch a lot of fish and return to the shore. Bill says to the Frank, “I hope you marked the spot where we caught all those fish.” Frank replies, “Yes, I marked an ‘X’ on the side of the boat to mark the spot.” Bill says to Frank sharply, “You idiot, how do you know we’ll get the same boat?”
I hate fishing. It’s boring. And monotonous. Cast and wait. Cast and wait. Is that a fish on the line? Nope – just a bunch of garbage. Time to cast again. How many times do I have to do this before I’ll catch the big one?
Fishing is no fun. That is, if I’m fishing for fish.
My day usually starts around 6am. After reading the local newspaper cover to cover I check out some of my favorite blogs (BiggerPockets tops the list). Then it’s time to get on the multiple listing service. I look for short sale and REO listings that have been on the market 60 days or more.
After lunch I start reviewing the list of homes going to auction the following day. I typically spend 2-3 hours researching prospective houses. On a busy day I’ll bid on as many as 10 properties.
Yesterday was no different. By 9am I was at 4070 Big Horn, a short sale – 239 days on the market with a list price of $235,000. I figured it was worth about $270,000 retail. Two hours later I emailed the agent a contract for $215,000. An hour after that the agent sent me a fully executed contract and a promise to upload the offer to Equator immediately.
I also keep tabs on the auctions. They take place at 10a, 11a, 12:30p and 2p. In between the contract writing and phone calls I’m reviewing title and drive reports for the houses I researched the day before. If they’re clean I place my bids.
I bid on four houses yesterday. Two of the sales got postponed. I was outbid on the other two – one of them by $32,500.
It’s like that in this business. Since the beginning of the year I’ve bid on 293 houses and won 10. The bottom feeding I do on the multiple listing service for short sales and REO properties is equally as redundant. Out of 30 offers written so far this year I’ve had 2 accepted. That’s a lot of casting and waiting.
I’ve learned that in order to find really good deals on a consistent basis I need to keep multiple lines in the water. Reeling in a profitable auction, short sale or REO deal takes a lot of patience and persistence. Maybe this fishing thing isn’t so bad after all.