Re: Would this be inappropriate? - Posted by Perry K. Harris
Posted by Perry K. Harris on March 02, 1999 at 12:46:07:
The approach I would take is to get an offer into the hands of the person who is going to make the decision on whether to accept your offer or not.
This is where the mind set of “there are no rules” comes into play. Let me first say that irrespective of how you buy the RE, the commision will be paid. So…I don’t care about what the realtor thinks of my tactics, I care about what I can do to get the deal.
Especially, if I suspect the realtor is making a play, and it seems like that might be happening here. This is akin to going to an attorney of one’s former spouse in a divorce case, and expecting your spouse’s attorney to win you a favorable judgement against your spouse.
I would write an offer up, that I can live with, and I would mail it certified, to the REO employee of the entity that holds title to the property.
This isn’t any different than if the REO officer had tipped off a buddy about the property, and the buddy came on down to the bank and dropped off a written offer.
The realtor would eventually handle the offer, and would still get the commision.
What you are doing, is getting your offer, in front of the REO officer, and not being entirely at the whim of the sales agent, and the agent’s motives, to hinder your offer, if that is in fact the case.
I would include a letter with the offer, that would indicate that I am a RE investor, engaged in buying wholesale properties for my RE portfolio, and I’m not in the business of losing money, therefore I have stuctured my offer to fit my parameters.
I am not interested in longshots, and having my money tied up for extended periods of time.
I have taken the time to submit a credible offer to your firm and would appreciate consideration.
Think about this : I wanted to buy a VA repo in a city I was not entirely familiar with. The RE was in a marginal area, but the immediate neighborhood had an obvious air of “pride of ownership”.
I paid for an appraisal of $275. My plan was to rehab the RE for $10K. Purchase price was $25K, and value was projected to be $55K. After figuring fix up, the future value was projected to $38K. No thank you.
My point is I hired expert help and it saved me from a tremendous heartache later.
This is just a what if…What if you hired an expert ? I’m thinking about an attorney that specializes in RE foreclosures / REOS. What are they charging, $50 an hour ? One hour counsel, and the intro may be free, then an hour at the realtors, and if the bank is out of state, an attorney recommended by your local attorney can go to the bank in San Diego. So…you are out 3-4 hours @ $50 per. That’s less than my appraisal fee.
I believe this would filter out the crap that it seems to me you are having to wade through. Just a thought on a little different perspective. How much money are you actually going to make on the deal ? Is it worth it to hire an attorney ? Is it neccessary ? You are basically in a game of hardball, and YOU get to make up YOUR rules for YOU, just like THEY get to make up THEIR rules for THEM. Hey…throw THEM a curve ball, then a fastball, then a slider, then a change up, then a knuckle ball, and don’t forget the old spit ball. And in the majors, sometimes they throw a beanball.
Never let them see you sweat. Approach this deal like it’s your 20th one today, and you could really care less if you get it. Because you know what ? You might not get it. But if you do…PAY DIRT ! Because YOU wrote an incredible offer, stuctured where you profit, on your terms. Thanks, Perry,Ill…