Busy day today.
I got counters on three of the properties I offered on earlier this week, one of which was a 10k price drop. It’s usually a good sign when the bank drops the price substantially on the first counter, so I’m thinking I can get them to come down a little more. I’ve been after this particular property for about five months now- it keeps going under contract and then popping up on the market several weeks later. Good news for me, bad news for the bank…
If I can get them down a few thousand more, I’ll have myself a deal. The property is in a neighborhood that one of my favorite buyers likes, and I know he is looking for deals right now, so hopefully it will all work out.
I also got a call from an REO agent today about a property that I offered on almost 3 months ago. At that time, it was listed at 33k and I offered 13.5k. The bank rejected my offer three months ago, but the agent told me they are getting ready to do another BPO and she thinks the bank will take 13.5k this time around. I haven’t been inside the house since I made the first offer three months ago, so I’m going to go check it out again in the morning to refresh my memory…
Let’s see…what else?
Oh, one of my wholesaler friends called to tell me about a property that is about to hit the market in the next day or so… The listing agent is giving him first dibs on the house (damn dirty agents!!!!), so I went to check that out today as well. Another one of my buyers is looking for properties in this neighborhood in the same price range, so this could potentially turn into a deal, too.
I’ve also got about 10 other offers floating around, so I should be getting feedback from those over the next couple of days.
Lots of lines in the water, just waiting for a bite..
And that’s all I’ve got for today, folks.
Adios Amigos!
P.S.
My plan to check emails only once/day is not working out so well.
I need an intervention, I think.
On November 05, 2009 at 11:28pm, Taylor said...
What’s up Steph! I’ve been off the radar for a while, but noticed you in the running for the RE Blog Battle. My guess is that your victor video would have been more interesting than the winners…
I think I may have found a transactional funding source (dough for a day) and a buddy to work with to start working the REO market here in CA.
Any idea how many offers you make compared to the number of deals you pick up? I have heard anywhere from 21:1 to 63:1 here in CA and that sounds like a lot of offers to snag one of these properties.
I’m still sticking with probate and absentee owner mail for now.
Keep posting!
-Taylor
Taylor´s last blog ..Back in the Saddle
On November 06, 2009 at 8:07am, Stephani said...
Hey Taylor!
The amount of offers you’ll have to make to get a deal really depends on your market- how much inventory is available, how much competition, etc. Also, if you are making clean, cash offers with no contingencies, your ratio will be much better…
When I was first getting started, it took me over 120 offers before I got my first deal under contract. I didn’t really know my market at all, and I was making my offers way too low, and adding all kinds of contingencies. Once I got to know my market better, I got more confident with my offers, and was able to drop the contingencies all together, and my ratio got much better..
Nice to see that you are still out there movin’ and shakin’.
Steph
On November 06, 2009 at 12:10am, Debbie said...
Tonight I got that scary feeling again, and once again your words comforted me. See, I got a call from a serious buyer because I advertised a house at .40 on the dollar. Well I had hoped to add callers to my buyers list, but when this man called so excited, I felt bad. So I added him to my list. Tomorrow I meet with one of the biggest investors in Town. So, I think the problem is on one hand I am bold, but these baby steps are scary.
I just began my business less than a week ago, but I really need houses for these investors.
Debbie
On November 06, 2009 at 8:11am, Stephani said...
Debbie,
You are kicking some serious butt, girl! Good luck with the meeting today, and please let me know how it works out..
It is definitely scary when you are just getting started, but you are doing the right thing by TAKING ACTION even though you are scared.. Many people get stuck on the sidelines forever because they are not willing to move out of their comfort zone and take the steps that need to be taken in order to get the ball rolling..
Keep up the great work!
On November 08, 2009 at 9:31pm, Niki said...
Hey Debbie,
Just out of curiousity, where are you finding your buyers? Did you put out bandit signs like Steph said? How did your meeting go with the investor? I wish you the best of luck with investing. We are excited to finally step out of our bubble, and make some deals happen!
Steph, thanks for the tip on the bandit signs. We are going to try and put them in a different area this time. We had tried a while back but didn’t get any response. Come to find out that someone removed all of them!
On November 08, 2009 at 10:36pm, Stephani said...
Hi Niki,
The signs work really well for me- I put 40 of them out this weekend, and have already got a bunch of calls.
Let me know how it works out for you next time around..
Steph
On November 09, 2009 at 5:23am, Shae said...
Hi Niki, when we were first using bandit signs, we found that some areas in the city were just bad spots…and others were good ones. It’s a little bit of trial and error. What I did find is that putting signs near other signs worked out pretty good for us. Just stay consistent and keep putting them out and your phone will definitely start ringing.
Shae´s last blog ..More offers, more deals
On November 06, 2009 at 8:31am, Shae said...
Go get ‘em, Steph! 3+ deals before the end of the year for you!
Shae´s last blog ..Step back. Strategize. Laser focused action.
On November 06, 2009 at 8:45am, Stephani said...
Working on it!
On November 06, 2009 at 8:43am, Gene M said...
Hi Steph,
Got your eBook finally, and listened in on the call with JP last weekend. You guys did an awesome job!
I was wondering if you could give me a title company referral in Tampa. I’m also in Tampa, and am working on getting my ducks in a row as far as title company, attorney, etc.
Thanks Steph!
On November 06, 2009 at 8:47am, Stephani said...
Hey Gene,
Here’s a link to the title co I recommend:
http://www.grumanlaw.com/
Have a great weekend!
Steph
On November 06, 2009 at 9:20am, Scott Costello said...
I like seeing you back in the swing of things and all those offers going out. It’s kinda funny (for me as a new investor) to read you had to go back to a house you made an offer on to refresh your memory. I could name the paint color in the half bath down in the basement of the houses I’ve made offers on so far…hahaha
Scott Costello´s last blog ..Finding That Darn Public Notice Newspaper
On November 06, 2009 at 9:26am, Stephani said...
Hey Scott,
Yeah- after awhile all the houses start to get jumbled in my head and I can”t remember which one is which..
Also, the ones in the hood often get vandalized, so if it’s been sitting empty for three months, there’s a good chance that there could be more damage to it than there was before..
Steph
On November 08, 2009 at 3:13pm, Julie Broad said...
Hey Email Addict… why don’t you try only checking 2 or 3 times a day instead of aiming for just once???
And when you check set a timer for say 20 minutes so you don’t get sucked in… just a thought.
Love the deal updates!! It’s pretty darn windy here in Florida but can’t beat the heat.
On November 08, 2009 at 3:19pm, Stephani said...
Hola Mrs. Blog Champion!
I’m actually going to try the twice/day thing and see how that works out. It’s hard to resist when I have my Blackberry on me all the time, though..
Hope you’re having fun in FLA- next time, swing by Tampa.
On November 11, 2009 at 10:43pm, Linda said...
Hey Steph,
I see you have low offers. What are your guidelines for the properties you put offers besides being REO’s? Does it matter the location of the property to you? Or is it more on the price? What about the property’s structure and floor plan? Do you consider any of that? Or it doesn’t matter as long as the price is right?
Thanks
On November 11, 2009 at 10:57pm, Stephani said...
Hi Linda,
I find out what my buyers are looking for, and then I go and make offers on properties that fit their criteria. I kind of work it backwards- instead of getting a deal under contract and then searching for a buyer….I get a buyer lined up and try and find them a deal..
Make sense?
Steph
On November 15, 2009 at 5:05pm, Adam said...
Hello Stephani,
I love your strategy, but it seems like it might be a strategy that just works good in todays market due to the economy. Do you have a transition business plan after these banks get more of these REOs off their books? Will you maybe start to make more MLS offers for non-REO properties?
Regards,
Adam
p.s. In your eBook you had recommended to consult an attorney to make sure you have all the important clauses in your contract for your end buyer. I’m in the process of putting together my purchase contract for my Buyers. Would you be willing to take a quick glance at my contract to make sure I hit all the important points before having my attorney review? I would greatly, greatly, greatly appreciate it!
On November 15, 2009 at 5:33pm, Stephani said...
Hi Adam,
Yes, I agree with you that this strategy is probably not going to work so well once the amount of foreclosures on the market gets back to a normal level. I’ve been checking the number of lis pendens that are filed in my county every month for the last 2 years, and there has yet to be a slow down- there are still roughly 2000 being filed each month. I think I’ve got another 2 years to take advantage of the market, and I plan on busting my butt and stock piling as much cash as I possibly can in that time period.
I am working on some other business opportunities right now (non-real estate), that I plan on venturing into once the REO opportunity is gone…
Regarding your contract, I’d love to help you out, but I’m not in any way qualified to give you advice in that area. You can always use the purchase and sale agreement that is approved by the board of Realtors in your state until you have a chance to have your attorney review it…
Take care,
Steph
On November 19, 2009 at 6:19pm, Scott said...
Hey Steph! Just got your Ebook! Thanks for taking the time to write it and offering it at such a low price. I’m going to go read it twice and do it! Thanks again! I’ll let you know how it goes. Ive been following your blog. I know your the real deal and other seasoned investors I have been talking to also recommend it.
On November 19, 2009 at 6:23pm, Stephani said...
Thanks Scott!
Let me know if you have any questions after reading it through- I’ll be happy to answer them for you.
Steph