Posted by Brent_IL on December 09, 2000 at 12:48:41:
Posted by Brent_IL on December 09, 2000 at 12:48:41:
Time to make an offer - Posted by Geoffrey Faivre-Malloy
Posted by Geoffrey Faivre-Malloy on December 07, 2000 at 19:10:03:
OK. I’ve looked at a few houses, calculated my MAO and am now ready to make an offer. How do I do this? Just call the real estate agent and tell them my offer? Do I need to sign something first?
Any tips on making the offer when talking to a Realtor?
Is it? I’m not so sure… - Posted by HR
Posted by HR on December 07, 2000 at 22:58:54:
I don’t think you are ready to start making offers on rehab projects. Maybe I’m missing something, or I missed some earlier posts you’ve done (likely), but I’m concerned that you are asking far too many basic questions to be ready for a rehab. Rehabs are not a great place to start for beginners. They are definately the fast track and it’s easy to get slaughtered doing them.
-Do you have rehab crews you can rely on? Do you know who you will hire? How much they will charge?
-How are you figuring your repair costs? This is a CRITICAL piece of the puzzle. Get this wrong and you are in for a seminar, as Ron Legrand says. How do you know your numbers are right?
-How are you even running your numbers? What is your MAO? Arv? repairs? Profit?
These are some advanced skills you say you have done, and you feel comfortable with. Yet, you are not comfortable doing the most basic of skills- like filling out contracts, working with realtors, etc.
Listen, G-man: I’m not out to rain on your parade. I may be completely wrong. I’m just trying to help, and if I’m wrong, I publically admit it. But when I see a guy asking this basic questions, I seriously doubt he has mastered more advanced skills. And if you haven’t mastered those advanced skills, you are in for a slaughter. And you gonna be the lamb.
Do you have any books or courses on rehabbing? Whose methods are you using? You may want to purchase Legrand’s rehabbing materials before you start… he teaches how to calculate, how to make offers, how to find and work with realtors, etc. I’m not saying he is the only or the best, but his stuff is easy to buy and it will help avoid (some) disasters.
I seriously doubt you are ready for a rehab. Slow down. Work on your knowledge and skills first. Better to pass on a good deal than get involved in a bad one.
Re: Time to make an offer - Posted by SueC
Posted by SueC on December 07, 2000 at 20:46:18:
Yeah, the realtor will make you come in for an hour and sign a 15 page document which basically says “I’ll pay $X”. Lots of contingency stuff. If you are making a creative offer, you should type up the terms on a separate piece of paper ahead of time, keep it simple, and take it with you and make it an addendum to the Agreement of Sale document. Sometimes they have forms for the addenda too, but you can just say See Attached I think and staple them together.
I don’ tknow if there are article here, but there are some good pointers in various courses about how to modify the terms of an Agreement of Sale - things like cross out the Assignment prohibition, or make the agreement contingent on the approval of a “partner” if you are going to flip before close, etc. I can’t think of others off the top of my head. (Although, I tried this one and the agent balked and wanted the financial statements of my “partner” before they would present the offer! Well, I got them to present it anyway, but
the seller decided to take the place off the market and live there himself.)
Something else I’ve heard about, but never been able to make happen, is to try to present your offer to the seller in person, of course their agent will have to be there too, but if your offer is at all creative, you don’t want to risk the agent sneering when they present your offer to the seller! I can’t seem to get agents to agree to this though.
Re: Time to make an offer - Posted by Redline
Posted by Redline on December 07, 2000 at 20:38:26:
My first tip: Put it in writing.
Any realtor worth his/her salt won’t be interested in any verbal offers because they’re worthless.
If you want to be taken seriously - write it up and sign it!
Yeah, Here’s a tip - Posted by Clint . S.D.
Posted by Clint . S.D. on December 07, 2000 at 19:32:55:
They’re “Evil” and will find a way to mess you up!
Buy a course that teaches how to buy without Realtors.
Re: Is it? I’m not so sure… - Posted by Geoffrey Faivre-Malloy
Posted by Geoffrey Faivre-Malloy on December 08, 2000 at 08:41:03:
I don’t want to rehab em. Lords no. I just want to wholesale them to other investors who will rehab them.
I’ve gone through the Wholesale/Retail course of LeGrand’s but it’s possible I’ve missed some stuff. Time to take a step back and listen to those CDs again!
Trust me - I’d rather have someone rain on my parade than have the Reaper come after me
Thanks for the advice!
Re: Time to make an offer - Posted by Brent_IL
Posted by Brent_IL on December 09, 2000 at 12:45:42:
One way to get to the sellers is to tell the RE agent that you want to bring an “inspector” in to confirm your judgment. Say that if everything goes as expected you will make a full price offer, and you need everyone there to sign off.
Your inspector may find something (anything?) that will prevent your offer at full price. Now it’s time to negotiate.
My preference is to make the offer at listing price, or higher, and take it away with the terms. That?s just me.
Re: Time to make an offer - Posted by Geoffrey Faivre-Malloy
Posted by Geoffrey Faivre-Malloy on December 07, 2000 at 21:24:24:
Any suggestions on what it should look like? LIke I’ve said - I’ve never done this
Forget Realtors? - Posted by Houserookie
Posted by Houserookie on December 07, 2000 at 23:16:34:
HOw can you forget realtors when they sell over 80% of the homes on the market?
Re: Time to make an offer - Posted by dewCO
Posted by dewCO on December 07, 2000 at 22:17:57:
Geoffrey, Here’s my hint, if you don’t know what you’re doing on this, get a buyer’s agent to help you write the contract, etc. If it’s listed with an agent already, YOUR agent’s commission is already in the deal and the chances that the price will be reduced by an equivilent amount if you don’t have an agent taking part of it is almost nil. (The listing agent will want IT ALL!!!)
If it’s listed you need to use their contract. You can start with one of your own, but they’ll want to wind up using theirs, and not using theirs to start with would probably label you a real rookie investor, which could = they are wary of you right off.
Re: Forget Realtors? - Posted by Rob FL
Posted by Rob FL on December 08, 2000 at 23:38:56:
Being a Realtor myself, I can say that 50% or more of what I buy is not through Realtors.
But definitely team yourself up with a good Realtor. Almost any bank-owned properties will be listed with a Realtor. Also all HUD and VA bids must be placed through a Realtor. A Realtor is a must for your team.
Re: Forget Realtors? - Posted by dwCO
Posted by dwCO on December 08, 2000 at 16:55:02:
You want MOTIVATED sellers, not just a property for sale. You want the other 20%!