Which is the better acquisition approach? - Posted by Michael

Posted by Nate on March 10, 2001 at 06:22:59:

Why are these “hot properties”? Are they priced well below market, or is it simply a hot market?

If it is the latter, I question why you are even bothering. Buying at or above retail is a very hard way to make money!

If it is the former, and there are tons of value-added opportunities in your area, you may want to focus on a few areas of similar houses and learn, as best you can, what the likely maximum rehab expense would be. Then you can assume this worst case scenario and make offers immediately, subject to inspection, for those houses that would be a good deal under the worst case scenario.

Good luck.

Which is the better acquisition approach? - Posted by Michael

Posted by Michael on March 10, 2001 at 24:10:29:

I’m currently working with several agents who send me weekly listings. After I drive-by, when I go to submit the offers, I find that some if not most of the “hot properties” are already under contract.

Is it a better idea to submit an offer w/an inspection clause before even looking at the property?

I figure that way I can lock in the good deals w/out having to waste valuable time driving by or inspecting them before submitting an offer.

Any suggestions? Advice? Comments? Experiences?

Thank you very much,

Re: Which is the better acquisition approach? - Posted by TJ

Posted by TJ on March 10, 2001 at 11:41:00:

These agents are probably taking the listings straight from the MLS. Oftentimes, listing agents do not bother to promptly remove listings from the MLS as soon as they are under contract. Agents know this and that’s why they routinely call the listing office to confirm that the property is still available before wasting their time or their client’s time going out to see the property. Next time an agent sends you listings ask if they’ve checked whether the property is still available.