Let's List Our Exits For Everyone's Benefits
I've made a similar post in the past but I'm still missing something (how to get a faster exit.)
This is what I currently use to get a close to market value exit. I know many are saying, "That's his problem---he wants close to market value." Well, I know price is a big factor on a quick exit. How much off FMV is considered a "good discount?" Also, there is a profit margin I need to make so all things are taken into acount when setting the price such as repairs, advertising, utilities, any commisions, etc.
My typical exit which does work fairly well includes:
1. Listing on MLS for $400 ( I advertise 3% commision to buyer's agent)
2. Lisiting on a free FSBO website which allows 5 pictures
3. Ads in local papers
4. signs in the yards
5. lockbox on front door
I don't want to offer owner-financing becuase it takes too long to get cashed out. I recently came across a guy that said he would write a note and then sell the note for me. I still need to have lunch with this guy to learn more.
One of my perceived problems is that I don't advertise the house until it is ready---meaning after all repairs are made. In my experience I've had buyers not be interested due to the inabiliyt to look passed minor repairs and "visualize" the end product.
I'm missing something???????? I do need to fine tune my exits but I'm unsure how. You might me thinking that I'm getting into too tight of deals but there typically is some nice wiggle room for price negotiations but many buyers are afraid to give me a low offer to start the negotiations. Some buyers have really missed out on some great buys from me out of this fear :-D
Can someone help me on their thoughts of making better exits?
Thanks--Jim
Newbie here... are you just trying to sell to joe schmoe buyer after rehabbing? Or to another investor to hold/rent?
Justin-
To joe schmoe. Most investors won't touch it unlest there is $15-20 for them. Not rent. i currently have some rentals and I'm selling them. .Had them for 5 years and am tired of mr landlord.
Thanks
Someone just posted this idea a week ago, not sure if it was here or on another forum.
List on the flat fee MLS, offer 3% buyer's agent commission AND offer a 5% buyer's commission IF it's a FULL PRICE offer. One last thing, price the house at 5-10% over FMV. Nothing motivates a salesperson like cold hard cash.
tomjerry,
Looks like you've got it down. You do advertise your price, right. Also, the "note" guy can be a good route if you are willing to give up some of your profit.
Kelly(WI)
Knucs--
yep I advertise the price. I think the next step is to find the notebuyer, which I'm getting some referrals on as we speak. This should be a good route to speed the exits.
Thanks for everyone advice--jim
Hello. Could you tell me how I can get a property on the MLS for the flat rate? Is that available in NJ? I would like to be able to have my properties on the MLS as a formality when submitting my short sale package to the bank (i.e. I don't really want a realtor involved.. I just want to list them one on the HUD 1 and in the contract to reflect their "commission", as a way of getting the bank to take even less for the short sale)..
So please advise. Thank you and best regards.
AJB
8-)
Jim,
I just remembered a couple more! I read an article by someone titled "Directionals move properties". In other words, have many signs out near the major ways of getting to your property. Put them in other people's yards(after getting permission cause you gave them $20 or $50 gift certificate to a decent local eatery, hey they even "protect" your signs till you come back to pick them up!).
Also, flyers in the neighborhood with a $100 - $500 find your new neighbor reward! Have kids put your flyer on car windshields at the local grocery store or Walmart.
Hope those help!
Kelly(WI)
AJB,
Most banks ask for a listing agreement prior to doing a short sale, not that it be on the MLS(their way of seeing if it was marketed prior to you coming along and them not getting all the money due them) . The less money they net, the less they may be apt to short, so having a commision for a realtor on the hud1 is counter productive to what you want. It can work that way if one is involved, I think most give realtors 5%max .
Good luck,
Kelly(WI)
A lot of people (including myself) work on the outside appearance of a property first and market the property as soon as the outside looks good. Take peoples names and numbers and call them back to schedule an appointment. You can use the line that your insurance company won't allow the house to be shown until remodeling is completed or something.
GOOD LUCK
No No let them come in. Grab a sketch pad and as they talk about what they want you draw. Quick Sketch, time you learned. Then as you get near the end and they decorating away like crazy, you hand them the pad and the pencil or hunk of charcoal. They are now involved. Just yank the pad out of their hands and have them sign the offer. You are done.
I used to sell a lot of my iky properties like that. I still remember the very gay guy who yanked the paint brush out of the painters hand. Made us stop everything. Then we sat and waived hands at each other and redesigned the whole damn thing. He handed me a check to cover and I had him sign the offer and the next day we played again in escrow. Damn good feel for color and line. I told him so. He paid for lunch. I think I bought him a new Tutu for christmas. Ah the life of a Real Estate Investor.
Cheers Lucius
Woops, the market has really changed.
I am in the office of the Loss Mitigator aka Walter Mitty. He is giving me book and verse on a piece of property that is now 8 months with no payments. Why? cause they have been playing short sale, BK, Military Overseas posting, (I think it was the dog. Reserve Army K9 !)
The guy was good, but I moved him into a little barn out in the desert. No payments for six months. I take a Grant Deed and here I am in the bank. Mitty is hostile, this has been shuffling along a long time. So, we play a game. I make him look good and he makes my day. I hand him a check for five of the past due payments. He takes his costs minus the fake attorney fee and adds that plus the other payments onto the back of the loan. He now files a modification of the note which now reduces the interest rate to 6% and the amortization schedule is 30 years. The nice man makes me draw up all these submissions and I give him the clincher. I have three of my very wealthy investors buy Certificates of Deposit in his bank. Talk about love at first sight er site.
That is it. I now own the property with only a nice new lovely first Trust Deed. The old owner likes me cause he always wanted to live in the desert in a barn. The Mitty type person is happy cause he looks like the winner of all time. He has turned a scheduled item into a winner and at the same time brought capital into the bank which costs them 1% of interest and they can lay it out at 6% and then sell the mortgage into someone elses portfolio and pick up another point or two.
I like it cause the property fully financed 100% is about $20,000 below True Value and about $60,000 under todays little spike Present Time Value.
If it all slips down to semi norm. I have a good deal. Income over outgo. I could always sell it and give someone a real break on price and come back with a nice second and with a little luck pay no tax. Up goes the income stream. I like it.
Cheers Lucius
Wow--Great advice. Myfrogger and Lucos---definitely some new insight. No excuses to "quicker" turning now. This site is awesome!!!!!
Thanks again--jim :-D
I have a very good mortgage broker who works with A-D credit and can usually get them 100% financing. If not I sometimes will take back a 2nd mortgage.
I also have ajbaldwin's question: how can one list their property on MLS for a flat fee without using an agent? Thx. :-?
Adam--
I searched online for "MLS flat fee" in my area and found one. These are becoming more popular and should be easy to locate. Most are between $200-400. They've worked great.
Let me know if you need anything else.
jim
Yep, Jim, there it is, clear as day, at the top of the search engine listings. Wow, and I'm the king of using internet search engines - just didn't this time! Thx!
Just did a google search and found the info about flat fee listing on MLS in about five seconds. Seems it's offered by a few different companies, with more surely lurking in the shadows....
{edit} Oops, guess I should've read page two before posting... [ Edited by loon on Date 04/07/2004 ]
Just did a google search and found the info about flat fee listing on MLS in about five seconds. Seems it's offered by a few different companies, with more surely lurking in the shadows.
Well there are two things that can help, it seems to me. One is Lucius's suggestion to start showing sooner. People like being in construction sites, makes 'em feel like Bob Villa. Once they say, "Gee, I'd really like a pass through here." Youv'e got em, "sign the contract today and I can do that no charge 'cause we're still in the construction phase. Anything else you'd like?" When they pick something really expensive add it on the price, point out that they can afford this now cause they're financing it on the acquisition mortage at a low rate-- later it would cost much more.
This is what is known as the semi-custom rehab.
The second idea is to qualify buyers before you even have a house. Advertise that you have houses for sale in the area where you work. When people respond find out more about them, about what they want, and about how qualified they are. When you put your buy under contract start playing matchmaker before you even start work. Bingo you just took 60 to 90 days out of your back end.