Finding Properties
Is it just me or are other investors/rehabbers having a hard time finding good properties. Last year I did 8 projects, this year I've done four and have been looking for number five for two months. It seems that HUD'S are all owner/occupant and the houses I have bid on have been selling ABOVE list price.
I am in New Mexico and am wondering if others are having this problem. :-?
I decided to start rehabbing about 9 months ago. I bought my first SFR 5 months ago and it went back on the market a few days ago. I have purchased one other SFR 6 weeks ago and have not started on that property yet.
I did both through RE agents. My approach has been to look at markets in a very mico way... neighborhood by neighborhood. I like to find the best agent in each neighborhood that I am interested in. These guys and gals know about properties before they even hit the market. I work with 4 agents in and around New Orleans. I typically offer the seller purchase price right up front. Like this, I lock up the property and then I can begin to negoiate through the inspection process. This has worked on both ocassions for me. Once the owners get a signed contract, they start spending the money in their mind and it is much easier to negoiate.
Just my thoughts.
Well, I am in a different market with an equally as bad problem. Every hud home I visit is priced at 30 to 50% more than I would pay for it. I can even bid owner-occupant as we would like to find a different place right now. Still, there isn't much of a point of bidding when they start out so high.
The funny thing is - they don't seem to be selling for months yet they have not been discounting them through price reductions. I am thinking of puttin gin a $120K offer on a $185K list price...but I know it will never fly.
Wholesaler from NJ here and to tell you the truth, HUD homes are absolutely not the way to go in this market either - if they are open to investors, they are selling about 20% above what a rehabber would pay... I try to find owners of vacant properties, there are plenty of them around but the owners are so difficult to find...
Just my two cents!
[addsig]
I was just wondering if you guys have had luck with fixers listed with realtors? They're probably overpriced initially but I was thinking if you make enough offers, one might come through?
i can usually find a good deal in the mls but i cover 6 or 7 counties in my area you really have to look and read between the lines at some prop. that they may be willing to take a 'low ball' offer. you then have to deal with the agent most don't want to make the offer. but i have found really good deals that surpised the agent and me that they were accepted......km
I was just wondering if you guys have had luck with fixers listed with realtors? They're probably overpriced initially but I was thinking if you make enough offers, one might come through?
I stopped even looking at houses listed with agents about three months ago. If something comes through that I am interested in, I have my agent bust the seliing agent's you-know-whats for a confirmed submission of the offer. What is happening around me is that these agents are holding back offers and not even making them. It is their JOB to bring the offers to the sellers and I have no problem reminding them of that. I also tell them I WILL find the sellers to confirm they received the offer if I suspect and funny business. Primarily, this is happening with corporate owned properties, but I've had a few others not get submitted as well.
It's not good when you can't trust your realtor. I have a couple I am working with right now. The problem is that when they bring me a good property and I make a bid, the houses are being sold ABOVE list price. For example the last house I made an offer on was listed at $59,900, I offered $55,000 and it sold for $64,000. It seems everyone and anyone are bidding on distressed properties.