Posted by kf_az on June 20, 1999 at 24:09:33:
You’re right, my bad, I shouldn’t have wasted my time.
Won’t happen again. By the way, I thought your text preceding your “questions” was more significant than your queries.
REO Offers (Steve Cooke or others) - Posted by Ron
Posted by Ron on June 17, 1999 at 19:17:48:
It seems that lenders are often overly optimistic when pricing fixer uppers. I often offer 25 to 40% below their list price and my “hit ratio” is (not surprisingly) fairly low. Here are my questions:
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When you make an offer, do you offer lower than your max so that you have room left for a counter? If my max is only 60% or 70% of the list price, I feel like I should go in with the max I can pay for my first offer, but this leaves me no room to bump it up a bit in response to the seller’s counter.
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Don’t listing brokers (and sellers) become tired of frequent (unsuccessful) investor offers? How do you deal with that?
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Do you re-submit offers periodically? When?
I am discouraged by my low hit ratio on REOs, but I’m not getting rich on my deals (I target my profit/finance expense at 20% of resale price). I don’t think I should have to take a lower profit given the risk and investment involved in the purchase and rehab.
I’d love some tips how to be more successful increasing my hit ratio.
Thx.
Ron
Re: REO Offers (Steve Cooke or others) - Posted by SCook85
Posted by SCook85 on June 19, 1999 at 16:05:00:
My hit ratio is low as well, that is why I average 15 offers per weeks. I don’t ever care what the list price of a property is, the only reaso I look at it is to make sure I’m not paying to much, although I have offered above list price on a few occasions lately. I just offer what works and get the offers out there, many times it takes the banks months to accept the offer. They rarely get accepted right away.
Don’t worry about the banks getting discouraged. They get bombarded with offers all the time. Most of which they also turn down.
Timing is everything with the banks, so yes I do resubmit my offers regularly. If you get it into there hands at the right time you will get accepted.
I have bought a property in which my original offer was $45k, 6 months later I bought it for $29k.
As far as offering lower then what you want to pay I play it by ear. If it is a new listing you generally have to get your best offer in quick. Older listings I may offer less then what my numbers work out to be, but my counters usually only come up about $1000 if I do come up at all.
Hope this helps.
SCook85
Re: REO Offers (Steve Cooke or others) - Posted by kf
Posted by kf on June 17, 1999 at 21:19:14:
Firstly, I advise you not to use any percentage of “list price” for your offers…only FMV. Secondly, how many offers are you making per week? Absolutely your “hit ratio” is going to be low. That’s exactly why you must make many offers.
kf
KF, Did you read my questions?? - Posted by Ron
Posted by Ron on June 18, 1999 at 20:58:53:
I asked three clear, specific questions. Why bother to post a reply that doesn’t address any of them?