100 Offers A Week, A Technique Used By A Shemin Client...
Here's a quick summary:
One of his clients who does not like to talk to people nor negotiate makes 100 offers a week on properties. She finds the properties through MLS, newspapers, RE magazines, etc. She uses a one-page contract with a contigency clause and offers half of the listing price.
According to Shemin, about 1% accept her offer or make a counter offer (suggesting they are motivated). Her methods yield 4-6 deals a month and she now owns "more than 100 properties bought at 60 to 75 cents on the dollar."
Any one familar with this?
I've heard Shemin mention this, straight-forward, what's your question? I wouldn't be surprised if you got 1% to respond, it might be 1-5% of that 1% that is still a good deal, so maybe a deal or two per 1000 sent out, just a WAG.
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Quote:
On 2005-01-06 12:28, ray_higdon wrote:
I've heard Shemin mention this, straight-forward, what's your question? I wouldn't be surprised if you got 1% to respond, it might be 1-5% of that 1% that is still a good deal, so maybe a deal or two per 1000 sent out, just a WAG.
1000 offers a week at a 1-5% even if you land 1 a week at that price sounds good?
Is this method widely used and is who is Robert Shemin?
Robert Shemin is a well known "guru" on real estate. He has books, course, tapes, etc. all relating to real estate investing... He's been around for a while!
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Go for it and let us know the results, I wasn't being negative to it, just have had success with other methods.
Robert Shemin has a great 10 VHS tape program out there, I bought mine on Ebay, has a lot of content. He also wrote "the book" on property management. "Secrets of a millionaire landlord"
GL
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Yes, I have heard of that too.
I haven't tried it. The key is to make sure you don't creating a reputation that you only make low-ball offers in the realty world.
I have been noticing that many REO listings will not accept any contingencies and require a large earnest money deposit. I think they have gotten burned by offers that never panned out.
How do you make offers by yourself? Can anyone explain? Since, I am not experienced in this, I always use agents, but I really would like to know, how to make offers myself...
Do you also include an earnest money, along with the offer, so the seller or owner knows you are serious?
How can you make offer so that the owner can take you seriously? and by yourself and not through an agent? Any form or contract I need?
Ok, I understand that real estate investing is a numbers game.
My question is... How the heck can you check out 100 houses a week?
The ONLY way I can see you would be able to do that is just to pull houses off the MLS, believe the numbers/information on it is correct, and send an offer low enough that no matter what, you're going to be covered. Is that the situation on someone making that many offers a week?
You're talking 400 OFFERS a month, 5200 OFFERS a year! That's a LOT of offers!!
Its is simple you present a letter or intent stating you intertest in said property then also stating the way you would consider buying.. this is not an official offer until the broker or seller himself contacts you but contact has been made with you line of tought... then make a draft an spam them to all parties interested... good luck & good shopping.
Quote:
On 2005-01-07 09:23, ruizhen18 wrote:
How do you make offers by yourself? Can anyone explain? Since, I am not experienced in this, I always use agents, but I really would like to know, how to make offers myself...
Do you also include an earnest money, along with the offer, so the seller or owner knows you are serious?
How can you make offer so that the owner can take you seriously? and by yourself and not through an agent? Any form or contract I need?
but should we also include cheque? saying "if you should cash this cheque then the offer should be binding"? just to make sure they know that we are serious?
And how much should the earnest money be $500, $1000?
Shemin mentioned that this person sent out actual contracts with a letter accompanying it describing your repuration, earnest money willing to put down, etc. You can get a stack of contracts from a realtor or from most office stores.
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I would not send a check
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I've seen a modified version of this done, with the letter of intent saying the following:
"Seller is advised that Buyer's Check in the amount of $1,000 (whatever you decide for the amount) may be picked up by Seller if and when Seller executes a P&S Agreement on said property.
B has delivered his check and a P&S Agreement to his attorney, Joe Smith, at 123 5th St., Willywa, WI together with instructions to give said check to S upon S's execution of a P&S Agrement (or Deed, where appropriate)"
With this method, when your mass mailings happen to hit a broke and really motifvated seller, it may be just the ray of sunshine and hope that makes that Seller go immediately and Deed you his property.
Most RE lawyers would be glad to open a little "escrow" like this and just hold the file open for your deals...and of course they'd notify you if & when they had used your money and got you a deal in writing.
This is just a thought that might make some realitors not interested in working with you on the 100 offers per week strategy. Aside from the amount of time involved, If you are only planning to buy one or two houses, your realitor might just see you as someone trying to drive down the comparables for the neighborhood. If I am working an area of about ten mile radius and the houses in the area are going for 100k and I buy one for 50k the realitor cant really use that one as a comparable in the future, can they? Or are they obligated to show all comparables? So unless you are planning to buy lots and lots of houses to make it worth the realitors while then it is not profitable for them. this brings me to another question that may be showing my ignorance. Is it possible for realitors to selectively omit certain comparables to make the market more favorable to their commission? Is it likely? Is there any way to confirm that all comps have been shown other than to hire an appraiser?
I'm thinking if you make 100 offers, at least 1% are going to respond to them...
You just have to be prepared to be rejected more than accepted or even dealt with... this is ok as long as you go into it with this frame of mind...
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I think this might work but I'm not sure how current this story is. I did a private one on one "boot camp " with Robert in 1998 and he told me the story then.
George