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Hi REOPro Members,
So...REOPro has been approached by a large national buyer of distressed properties whose model is to buy, fix and flip.
They are hoping to leverage our 15,000 members to bring the distressed properties from around the country that they can push through on their model to buy, fix and flip.
Right now, it appears that members will go to REOPro, click on the "Buyer Direct" tab, input their property details and withing 48 business hours, know if our national buyer is interested in learning more.
As it stands right now, access to the Buyer Direct portion of REOPro will be a paid access section with a reasonable annual fee of only $29.95.
Right now, we are working out details like referral fees...if any, offer tracking, etc......
If this all pans out, our members will be able to go out into the market place and solicit listings knowing we have a buyer who is ready, willing and most importantly able to make a deal.
Replies are closed for this discussion.
Jesse that makes sense, but you don't understand what I submitted obviously. Have a good day.
Andrea - i don't understand what you are trying to convey either.
Sounded like the buyer who placed an offer on my property submission except that the contract was to subject to re-assign. I think hence the 45 days because they would be looking to flip or assign the contract to someone who would actually close on it in a double escrow situation. Which in my opinion, is not really a true buyer. The other thing is that suppose this was an REO, no way in high water they would allow anyone to re-assign or have nominees on the contract.
I wanted to remind all of you, your success with Buyer Direct is to understand, our buyers are institutional investors. They are not retail buyers. So, if you list a property on the MLS, have multiple offers and then submit your property to the Buyer Direct program hoping you will get a better offer than the highest and best you got from your bidding war....well, that's not going to happen. I can almost assure, our investors will not be able to compete with the highest and best offer you received through a MLS driven bidding war. Investors aren't looking to pay retail for a property, that's not how they make money or stay in business. The properties our buyers are looking for are at wholesale price points. Let me give you some examples.....
Most of our investors use the 70% of ARV minus repairs formula. Here is a GREAT article on the 70% rule that I strongly suggest you all read. https://www.biggerpockets.com/renewsblog/2014/02/14/70-rule-bible/
Jesus, I've been following this thread and reading all the comments. It seems to me the "Buyer" or investors as you refer to them in your program are in my opinion typical "low ballers." In my market in Dayton, Ohio as in probably most others around the country, the REO's I list as well as others already are priced below typical market value. Banks and asset management company's do appraisals and BPO's to get a realistic current condition value of any home before listing. They are priced below market and current tax values both. Now this invites other investors locally to see the value and make offers, sometime drawing in multiple offers as well. I don't view them as retail Buyers at all. I can double dip them many times, pay no upfront nor referral fee. The investors you refer to them as wholesalers. I think of the Buyers in my market the same. They aren't paying "retail." I'm not encouraged by your program at all yet. I would like to see some true success stories from your end with names and references of agents in the program. The concept is good but in reality its not a workable program here in my area. Thanks, Steve
As I have said previously in this thread, institutional investors can't compete with retail buyers. In my opinion, this is a law of real estate economics and as such, this program isn't going to work for every market. As I have also said in this thread, our institutional investors typically use the 70% rule when deciding how much they will offer on any property. Before you sign up and pay the $29.95 annual membership…aka, $2.50 per month fee, you need to make sure you understand the 70% rule and for more information on this, click here. Now, when it comes to success stories, yeah...you betcha, when we have some, we will be sending those out to everyone, keep in mind, we are only 5 weeks in and our investors have made only $5,000,000.00 in cash offers. Now, the really exciting part is soon...hopefully sooner than later, we will be bringing on smaller, local / regional investors who may not be hard fastened to the 70% rule, which should give our members more opportunities to obtain more reasonable offer....or at least an offer than doesn't follow the 70% rule however, it isn't going to change the fact, investors can't compete with retail buyers so, if you are joining Buyer Direct thinking you are going to get an offer greater or better than a MLS offer you received, that's just likely not going to be the case. By the way, your comment reminded me of something I think Abraham Lincoln once said, “You can please some of the people all of the time, you can please all of the people some of the time, but you can’t please all of the people all of the time”.
I would prefer to see the stats on the actual closings vs. offers.
Hey Andrea, I don't think we would ever give that out. I'm not sure any referral company does.
Oh well. John Giammarco indicated below several offer attempts needed for one acceptance. I just thought it would be an interesting stat to see how many property offer submissions via this platform would result in an actual closing. But no worries.
I don't think John was specifically referencing this platform so much he was speaking as a whole, when working with investors. Again, as I have always said and will always say, investors can't compete with retail buyers. As such, like John, my personal experience is that investors see real estate opportunities a lot like catching the city bus, sure....you may not catch this bus but, give it 15 minutes and another one will be coming right around the corner. In this way, investor know it's a numbers game and most follow the 70% rule therefore, as agents who work with investors, you need to know the 70% rule and be prepared to send in as many properties that you can which would potentially qualify. This way, you are bound to hit a few out of the park. Of course, this is why many retail agents don't work well or for investors because they don't have a institutional investor mind set. It's a different beast, make no mistake about it and it's not right for everyone. In fact, that's why I have allowed this forum thread to continue because, I think it's important for any agent thinking of becoming a paid member of Buyer Direct to educate themselves as much as possible and be aware of exactly what they are truly signing up for. Actually, I think such threads, questions, debates, opinions, replies, etc...helps us more than anything or anyone else. It gives us invaluable insight as to what agents are looking for, what investors want and how to bridge the gap. The reality is, in some markets, it's not possible while in others, it's lucrative.
I agree 100% Steve Strong, they appear to just be more low ballers; which we already have enough of those in the market.
As an agent who has worked with several investors, I would like to point out that in most cases I have had to submit several offers in order to have one get accepted. I see that Jesse has referenced the 70% rule in a few of his replies to these threads. The investors I work with use this rule as a guide on how they structure their offer. If you read the article Jesse posted a link to describing the 70% rule you will see that this isn't a hard fast rule but a guide and every property and investor has different criteria which works. The bottom line to remember is that for most investors it is a number's game, they are use to submitting several offers in order to get one that gets accepted. Another thing to keep in mind is that maybe their offer doesn't work today for your seller but in a few weeks a month or two your seller's bottom line could change and the buyer's offer may work. These buyer's don't take the rejection personally, again to them it is just a number's game if their offer wasn't accepted the first time maybe it will be the second or third time.
Keep submitting properties, chances are that sooner or later your going to submit one that gets accepted.