I tend to agree that it’s not critical but something to pay attention to. I used to own a house (I sold in 2006) and someone mentioned how to check for sex offenders near where you live — so I did. I too had a few very close to me — unnerving but what was more surprising was just how many there were.

Alex

Most agents don’t mind low ball offers, they can always ignore them until the bank is ready to dump the property… Be persistent until you find something that works… we made over 100 offers before we got out first one!

Just be careful to make each offer look genuine, this post might help you.
http://buildbankroll.com/2009/01/dont-use-the-bulk-offer-strategy/

Thanks for the response. Im trying to buy the properties at 65%-70% LTV minus repairs. This brings me to my next question if you dont mind. Are you only submitting offers on properties that have a lot of things wrong with them? Things like kitchen remodel, some demo, etc.? I ask because not every property I have visited needs much rehab. Most just need paint, landscaping, and carpet. I don’t feel right making low offers on properties that just need this type of work done to them. However, I don’t mind making low offers when the properties need kitchens, garage doors, vanity’s, mold remediation, etc.

Thanks

To answer your question, all the time we have 5-6 property offers pending, we probably make an average of 3+ offers a day. With REO properties, you will always get a counter, if many get accepted, you can just simply refuse to agree to the counter, making the original offer null and void. But with the prices we offer to pay the banks, we would be ecstatic if we got 10 accepted contracts. Since we don’t have the cash to do 10 at once we’d probably wholesale 50% of them.

There is no set formula for how many offers you need to make to get an accepted contract. It depends on your market and what % of ARV you are typically offering. This winter, the market was slow and we had a great relation with agents, we would get 75% of our offers accepted. Now we are getting less then 5% (over 100 offers with 2 accepted contracts), we are close on a couple more, but not accepted contracts yet.

I recently started making offers and Im understanding that it is a numbers game. I was thinking in order to get some counter offers and an offer accepted, I would have to make at least 10-12 offers at a time. Seem right?

Newbie Investor