Am I Birddoggin My Tail Off For Nothing?

Comments(7)

• 
  jeff120028th December, 2003

  I think your formula is right. I can think of a couple of reasons that may help. I do not know you situation like you do, but I'll take a stab at it anyway. If this does not apply to you, then disregard it.
  #1) The houses that you're targeting might not be ugly enough. You may be looking at houses that need alot of work, but if the seller is living with this day after day, they may have minimalized the problem in their mind.
  This happened with new truck I owned back in the 80"s. I had a situation that resulted in some minor body damage while out playing around in the woods. Nothing really major, but it really bothered me that the truck had gotten it's first blemish. After a few weeks it didn't bother me nearly as much as it did that first few days. After a while, I didn't even notice anymore. Don't get me wrong, Don't go around telling sellers that their homes are a piece of #@$*! That would be rude, and not really news to them, but you may have to throw some numbers at them to wake them up to the costs to repair some aspects of their home. Or, move on to homes that you are sure need major work. The more severe the repairs needed, the deeper the discounts.
  
  #2) If you're bird-dogging, what are you doing making offers? Do your part to pre-qualify seller, and then the property. Set the appointment for your investor/buyer, and move on.
  
  #3) If you're really not bird-dogging, and you're wholesaling, look at what you're doing to pre-qualify your sellers. Make sure that they believe that they NEED to get out of this property. If they are just fishing, you'll get a no every time.
  
  Good luck,
  Jeff [ Edited by jeff12002 on Date 12/08/2003 ]

• 
  MrMike8th December, 2003

  Quote:
  On 2003-12-08 20:55, JimcCurtis wrote:
  What formula does everyone one to come up with the MAO on a property?
  My rehabber uses this...
  
  ARV x 65% -(minus) repairs = ****Must Reach Freshman Investor status before posting URL's***hen (less 2,500 or 5,000) my commission.
  I'm trying REOs now, looking at 30 a week
  making offers on 10 a week. Getting turned down 10 a week!
  Like some input on what everyone else goes by.
  Thanks JC <IMG SRC="images/forum/smilies/icon_cry.gif">
  
  
  I am not understanding but I DO feel your frustrations.
  
  It seems you are putting forth alot of effort. I encourage you to stick with it.
  
  Rest assured you HAVE come to the right place. There are GREAT people here who can help you.
  
  I am not understanding are you saying you are getting turned down by the seller or the person you are bird dogging for?
  
  Each bird dogging situation is different but usually I see the bird dog finds the deal, gets the details and turns it over to the investor with an agreement on how much will be paid to the bird dogger if the investor ends up buying the property.
  
  Then if the investor is interested they make the actual offer.
  
  How is yours set up?
  
  Mike[ Edited by MrMike on Date 12/08/2003 ]

• 
  JimcCurtis8th December, 2003

  I guess your right Jeff. Maybe I should say "Am I Wholesaleing My Tail Off"!
  I'm making offers on mostly forecloseurs
  and assigning the to my investor. I just feel I have to go in so low. If and when they counter my offer, Im 10 to 12,000
  under. Maybe i have't gotten enough No's
  yet! I just thought my formula was off.
  
  thanks Jim.

• 
  InActive_Account8th December, 2003

  65-75% of fixed up retail value.
  
  Rehab cost, carry costs and everything else comes out of the 35-25% discount.

• 
  jeff120029th December, 2003

  Rehabinator,
  You may be able to use that formula if you're "rehabinating" it yourself, or when you've only got to re-roof, or paint, or replace carpet, but not all three. Could you explain to me how you would make this "worth my while" as an investor with a house with an ARV of 100K, needing 20K in repairs that you're purchasing for 70K? (30% discount) I want us to both make money. You as a wholesaler, and me as a rehabber. How about if it only needed 15K in repairs?

• 
  jeff120029th December, 2003

  jimcCurtis,
  Stick with it, and make sure you don't have an apologetic tone of voice when you make your offers. It makes you sound not sure of what you're doing, and less committed to your price..
  Be confident in what you're doing. You're formula is right. When you find the right one, You'll know.
  Jeff

• 
  rup9th December, 2003

  Here's something else you might try that has worked for me in a number of situations.
  
  When they counter, re-submit your offer along with a list of (slightly inflated) repair costs detailing what needs to be done to the property. It may help them in realizing that they are asking too much.