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Happy Monday Guys and Gals!
I’ve got a brand new Reader Mail Video for your viewing pleasure. It’s kind of a “Part 2″ to the last video I posted about learning your market. This one talks about making blind, low-ball offers on REO properties, and whether or not I think it’s a good strategy.
I almost didn’t get the video uploaded last night because my Sony is acting up again (over heating), but thanks to the help of some frozen vegetables I was able to pull it off.
Check out my handy work:
Broccoli on top
Peas on the bottom. (And also some veggie hot dogs)
I am nothing if not resourceful.
I made a goal recently to post one video every week for the rest of the year, and ain’t no way some shitty piece of electronics is gonna stand in my way. YOU HEAR THAT, SONY?????
So anyway, here’s the video…
(Don’t forget to pick the broccoli out of your teeth when you’re finished watching)
Hehehe.
P.S.
Mark your calendars for next Saturday afternoon (April 17th). I’ve got a special wholesaling training call that I’m going to be offering to a few lucky people. Check back here bright and early Wednesday morning for details. 
P.P.S.
This Month’s Flip This Book Club has been rescheduled for next Monday @ 8pm. One of my new blog readers just picked up the book over the weekend and asked ever so kindly if she could have a few extra days to finish.
P.P.P.S.
Guess what I’m getting via UPS today????
I’ll give you a hint- it starts with an “M” and ends with an “acBook Pro”!
I might pee my pants I’m so excited.
On April 05, 2010 at 5:32am, Greg Harris said...
Good advice as usual, but how the hell do you type with broccoli in the way?
On April 05, 2010 at 6:06am, Stephani said...
Hey Greg.
There is a business center in the building I live in that has several computers, but you can’t upload or download anything. I just had to get the video uploaded to Youtube, and then I used the business center computers to do the rest.
On April 05, 2010 at 6:39am, mobilehomegurl said...
Another great video, Steph! It seems like a lot of it boils down to just knowing the market, saying it over and over again sounds like a broken record but it’s so true! You give some really good examples of mistakes new investors when making offers without knowing the market, I can totally relate in the mobile home world. There have been people who have asked how they can find a mobile home for 2k – they just want to find a home in that price range which can end up to be a bad deal and/or no deal at all without knowing the market. And, yes it’s not a good position to be in being stuck with a property no one wants – I’ve definitely been there, thanks for sharing your thoughts!
p.s. Congrats on getting the new Mac, welcome to my world!
On April 05, 2010 at 2:44pm, Stephani said...
Hey Rachel- I’m definitely liking your world so far- this thing rocks!
On April 05, 2010 at 6:59am, Scott Phillips said...
Good info Steph, especially for the newbies. Most REO agents that I know locally will toss a contract that they know is from someone out of the area, or out of state that has not seen the house. Usually those contracts have a very low earnest money amount or a weasel clause that a guru (or more appropriately, an information marketer) has told people to use. Thanks for keeping it real Steph and giving investors the straight scoop!
On April 05, 2010 at 2:43pm, Stephani said...
Yeah, I’ve been making a point lately to call each agent up before I submit my offer to let them know I’ve checked out the property. Most people are just rapid-firing offers all over the place, so you’ve gotta do something to stick out in the crowd…
On April 05, 2010 at 7:01am, Shae said...
Great video, Steph! There’s no substitute for learning your market.
.-= Shae´s last blog ..She’s Baaaack! =-.
On April 05, 2010 at 2:40pm, Stephani said...
Thanks, Mrs. Shae.
On April 05, 2010 at 8:06am, Jeff said...
The Macbook Pro is the best out there. I hope you know how to run Mac, because it has it’s own quirks to it that can make you pull out your hair.
On April 05, 2010 at 2:40pm, Stephani said...
Hey Jeff,
I’ve been playing around on it all day, and LOVE it so far!
I feel like a little kid in a candy store…
On April 05, 2010 at 8:19am, Jusitn McClelland said...
The frozen veggie method is hilarious. I feel your pain. I’ve resorted to sticking my entire laptop in the freezer for a few minutes…that does the trick too. I don’t think you’ll have those problems with your Mac, I’m crossing over as well soon.
And good tips on the video, by the way.
On April 05, 2010 at 2:38pm, Stephani said...
Thanks, Justin.
Hope you are doing well out there now that you’re unemployable!
I’m expecting a success story from you very soon…
On April 05, 2010 at 8:37am, Erby said...
If a new property just gets on the market sometimes I would still offer a couple grand(2-3 thousand) below list price. That way the selling agent would still respond back to me asking for highest and best offer.
Hey, when my iBook use to run hot I use to put it in the freezer for about 10min. That would give me a hour worth of work time then back into the freezer.
Don’t worry. Once you go Mac you never go Back
.-= Erby´s last blog ..3BD/1.5BA Investment Property $37,000 =-.
On April 05, 2010 at 2:36pm, Stephani said...
Hey Erby,
I will do that, too every once in awhile- just to get my hat in the ring, so to speak. I always end up getting outbid, though, so I usually don’t bother with the new stuff.
You know, I was thinking about putting the laptop in the freezer last night, but thought the condensation would mess it up even more once I took it out.
The vegetables worked quite well, actually.
On April 05, 2010 at 8:51am, tony zamberlin said...
Steph,
so you focus primarily on older stuff? how many month on market do u usually start making offer at? i have one up here thats only been on market 76 days. asking 48k. i need to get for 30k. don’t think its worth making offer on due to being new still. ps. also have on that comps out 115-120k. Its new on market as well, but already priced dropped in first 30 days. i have a rehab partner on it if we get it accepted. they have the cash! asking 78k. we offered 60k as highest and best!
On April 05, 2010 at 2:34pm, Stephani said...
I tend to stay away from the brand new listings, but go after everything else. The new listings have way too much competition and they get bid up.
I wouldn’t consider 76 days a new listing. Why not just make an offer and see what happens?
On April 05, 2010 at 9:03am, tony zamberlin said...
steph,
i know you teach to look at low comps to get a wholesale value to move the property for. what if u dont have any lows, but only retail numbers in a neigborhood. also what to do if you have an area with 4 lows and 3 highs? or vice versa? is this good or bad?
On April 05, 2010 at 2:30pm, Stephani said...
I don’t really look at comps at all. I prefer to find the buyers first and ask them what they are paying for properties in the area.
On April 05, 2010 at 9:33am, Shawn said...
Hey Steph! It is me again!!! (lol) I wanted to ask you about short sales. i know that you do not mention these that often, but I am in Houston and there are alot of properties that are on the market that investors/wholesalers do not bid on. Am I missing something with these properties besides the fact that they take a long time to close. many of the properties that I have seen are good properties. Should I leave these alone or make offeres lower than what they are listed for? There is one in particular that is listed at 44.9K but I know that fixed up it will sell for about 70-80K. It needs about 10-12K worth of work and on a cul de sac in an established neighborhood that has a high demand as well. Can you assist me with this or do not need to mess with any short sales period. Any help is appreciated! Thanks!
On April 05, 2010 at 2:28pm, Stephani said...
Hey Shawn,
I’ve never really targeted short sales on the MLS, but I’ve been looking at them lately. There are a TON of them on the market here, too (like 3x the amount of short sales), so it’s kinda hard to ignore them.
I actually just picked up a course last week by a guy who is killing it here in Tampa wholesaling short sales off of the MLS (he’s not actually negotiating the short sales, he’s just making offers on ss properties that are listed). Definitely opened my eyes, that’s for sure…
It doesn’t take much time to make an offer, so you don’t have much to lose by putting some out there.
On April 05, 2010 at 10:02am, Clifford said...
Good call on the macbook pro! Using the interface will take a little getting use to but after 3 years I’ve had no problems.
.-= Clifford´s last blog ..Outright.com – Accounting Help =-.
On April 05, 2010 at 2:23pm, Stephani said...
I’ve been playing around on it all day, and so far it’s a breeze! There are a few things that I’m not used to, but it’s really user-friendly, which I’m loving.
On April 05, 2010 at 2:22pm, Stephani said...
Yeah, I’m loving it so far- especially the iPhoto. I haven’t even tried the video stuff yet, but I’m sure it beats the pants off of Windows Movie Maker.
On April 05, 2010 at 2:54pm, tony zamberlin said...
Thanks steph. just got a counter back on one i gotta get for 60k to do a rehab. they only came down 3k. lol down to 75. They want 7500 earnest money and backed closing up til the 23rd of this month. Last time i said “go” with the earnest money they came down 6k to our price, Unbelievable!!! Dont think on this one there gonna budge, but we will see. they gotta come down 15k.
On April 05, 2010 at 2:58pm, tony zamberlin said...
steph,
what do u consider a not new listing to go after?? thanks
On April 06, 2010 at 11:52am, Stephani said...
I’m talking about the ones that just hit the market at phenomenal prices. There’s so much competition here that it’s not worth making an offer. Your market may be different, so like I mentioned, why not just make an offer and see what happens?
On April 05, 2010 at 3:03pm, tony zamberlin said...
you don’t look at comps? wow! i guess i could do it like that. find out wat they are paying and go get it! thing is i have like 300 buyers on my regular list and only 8 vip buyers that get notified first. i’ve tried asking my list what price and area they are looking for, but not much response at all!! what do u suggest here?
On April 05, 2010 at 3:12pm, tony zamberlin said...
what is macbook?
On April 05, 2010 at 6:57pm, Bill Lassiter said...
Great stuff as usual Steph. And yes, this continues the theme on the importance of knowing your market. I’m with you on why making shotgun lowball offers is a terrible idea. I know because I’ve done it and I’m sure I got a bad rep with the REO agents. Worse, I did get one of these offers accepted at a price that was way too high for what my buyers were willing to pay and had to bail on the deal when I couldn’t wholesale it. Lots of wasted effort. Nothing takes the place of knowing your market and bidding on REO’s with confidence!
Keep up the great work Steph.
.-= Bill Lassiter´s last blog ..Inspirational Video =-.
On April 06, 2010 at 11:51am, Stephani said...
Hey Bill,
I did the same thing when I was just getting started, and it was a big waste of time. You might get lucky every once in awhile, but eventually you are going to either have to back out of a contract like you mentioned, or close on a bad deal. Neither one is a good thing..
Hope all is well with you,
Steph
On April 06, 2010 at 2:45pm, tony zamberlin said...
steph,
would u go after huge price drops as well? That one we recently got was a 40k price drop and we got on it the same day! Got it accepted. I’ve also got one that comps out at 85k. don’t know any investors in the area, but my guy here told me to do it based on 60% of the arv. needs 10k in repairs, were offering 31k on it. is this ok?
On April 06, 2010 at 2:47pm, tony zamberlin said...
Steph,
i noticed in your ebook you only got stuff for the most part within 20k of the asking price. is this typical? if so i prob shouldn’t be making offers below half of list..
On April 06, 2010 at 2:59pm, tony zamberlin said...
steph,
what about if you have a good relationship with a reo broker and he gets a new listing. you think he would take your lower offer over someone elses higher? would it be worth it then?
On April 06, 2010 at 3:55pm, Craig Fuhr said...
Regarding making lowball offers – I could not agree more, Steph. Horrible tactic that never works and gets the REO listing agents pretty pissed, pretty fast.
Regarding the MacBook Pro. LOVE MINE, and you’ll love your’s too! Wait until you discover how easy it will be to do your reader mail!
.-= Craig Fuhr´s last blog ..Its My Birthday. Another Year. =-.
On April 07, 2010 at 10:15am, Luke said...
Hey Steph,
I have a question about double/simultaneous closings. In my state (Iowa), closings are done by attorneys. I’m assuming I have to go through a company to get the title work done, then once that is finished the attorney closes on the transaction. My question is how would you suggest I find an attorney that is willing to do a double closing? My first plan was to just call their office and ask, but it’s pretty tough to get a lawyer on the phone. Also, what would I say? Most people have no idea what a double closing is…
On April 09, 2010 at 6:19am, Stephani said...
Hi Luke,
The best way to find an investor-friendly closing agent/title company is to get a referral. Go to the next REIA meeting in your area and ask around- you should be able to find out who everyone else is using. Or you could call up some wholesalers and/or investors who are active in your market and just ask them who they are using.
It’s a lot easier to go that route as opposed to cold calling. Most title companies/attorneys don’t do them so you will get a whole lot of rejection if you just start calling all of them.
Hope that helps,
Steph
On April 08, 2010 at 7:10pm, Karen said...
Hi Steph!
I’m in Tampa too so I am wondering, since all the new listings get snapped up right away, how do you find older ones to bid on? I agree that it seems to be a waste of time bidding on the new ones because I’ve been doing it for over a month with no luck. But then I also feel like if the listing is still hanging around for a few weeks, there must be something wrong with it or it would have been taken already, right? So what to do?? Do you look for ones that are priced too high, and so are still on the market, and make a lower bid?
Thanks for all the great info!!
Karen
On April 09, 2010 at 6:24am, Stephani said...
Hi Karen,
Not all of them come on the market at great prices. The ones that do go under contract right away. The ones that don’t sit there for awhile until the bank drops the price or until someone comes along and offers lower than list and gets it accepted.
If a property is sitting there for awhile it means it is priced too high and it’s not a good deal, so you can make it a good deal by offering less than list price. Sometimes they will accept your offer, sometimes not.
Hope that helps,
Steph
On April 09, 2010 at 8:35am, Tony Zamberlin said...
Steph,
how much less do u normally offer off of list?? from what i saw in your ebook most stuff was accepted at about 15-25% less than list
On April 23, 2010 at 3:59pm, Xavier said...
Hey Steph,
I have been looking at the whole game for a little while and wanted to try it… I wondered if your techniques work on non REO properties? Do you include real estate for sale contracts with clauses to protect the wholesaler included in you ebook? I have seen other programs but they are way more than I can afford at the moment. Any help or suggestions you have for a newie like me would greatly appreciated. Oh! bye the way I am TX…trying to find a mentor for real estate and I noticed your low, low price for mentoring…is this just for REO wholesaling or other types of real estate?
Thanks!
Xavier
Estate Hope
On April 24, 2010 at 12:13pm, Stephani said...
Hi Xavier,
My eBook is strictly about wholesaling REOs off the MLS, so if you’re interested in learning about wholesaling non-REO properties, it’s not going to be a good fit. I recommend Steve Cook’s Wholesaling for Quick Cash, if you’re looking for a solid course about wholesaling that is not focused entirely on REOs. If you click on the resources section of my site (at the top), the course is listed for sale there.
As far as the mentoring goes, I’m teaming up with 10 other investors who have expertise in all areas of real estate investing (short sales, rehabs, wholesaling, landlording, etc), and we will be offering a coaching program with a very low monthly fee. We hope to have it up and running in the next 30 days.
Have a great weekend,
Steph
On April 24, 2010 at 6:37pm, Xavier said...
thanks Steph! I am definitely interested in the mentorship program….any idea when it will be up and running?
Xavier