Posted by Al on September 12, 2009 at 03:42:14:
Do you write up 20+ deals as a full blown offer? How much deposit? For instance $1mill $3Mill or do you just send out letters of intent? Nationwide or just local? When they get accepted…keep them or flip? Like one deal I am working on they are asking $2.3 Mill when I run the real numbers it is worth $1mill less. Thats why I hesitate to write the offer. Wrong thinking huh?
Problems finding deals on Loopnet - Posted by Mike
Posted by Mike on May 21, 2009 at 04:26:46:
Im assuming loopnet is like the MLS in many ways. You have to submit offers that meet the numbers you are looking for not what the seller is asking?
Are 99% of the loopnet listings way overpriced? Seems a lot like the MLS.
Perhaps cold calling sellers in your area truly is the best approach because then there would be no competition.
Re: Problems finding deals on Loopnet - Posted by DMcGehee.SF
Posted by DMcGehee.SF on May 25, 2009 at 22:40:16:
I think the idea & functionality of LoopNet is great, but I agree that it is very similar to the MLS and that many sellers are flat out delusional.
The firm I work for submits about 20 offers (on variour properties) each month and not a single one is what the seller has listed. While we do expect some negotiations, our offers are based on our calculations and due diligence. Each offer has to meet out each and every one of our investment requirements and very rarely will a listing price get us there.
I would suggest that whenever you are making an offer, your offer is based on your due diligence and knowledge, not what a seller or broker deems appropriate. If they turn it down simply move on to the next.
good luck.
Re: Problems finding deals on Loopnet - Posted by Al
Posted by Al on August 30, 2009 at 04:39:09:
DMcGehee.SF you are right on my friend. When you put the real numbers to a deal including mgmt repairs/Maintenance payroll etc. THEY DO NOT PENCIL OUT. Unlike you I just pass on them. Maybe I will make the offers based on my numbers. Out of 20 deals submitted how many have you closed?
Re: Problems finding deals on Loopnet - Posted by Edwin
Posted by Edwin on June 02, 2009 at 08:38:11:
DMcGehee, does your firm prepare actual offers? Or, LOIs?
I agree with you that many sellers are delusional. I am not sure what they’re smoking sometimes.
Thanks,
-Edwin
Re: Problems finding deals on Loopnet - Posted by D.McGehee.sf
Posted by D.McGehee.sf on September 10, 2009 at 24:36:19:
To be honest, we submit a huge amount of offers. We have always had this philosophy. Out of 20, 16 ignore us or tell us to “F off”. 4 will respond and 2 will likely close. We probably close on b/t 5-10% of our offers.
For us, we’d much rather do a huge amount of grunt work and have many deals fall through to ensure that when we do close we are getting a great investment. That really is one of our biggest competitive advantages.