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.
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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.
So my first submission on the new buyer direct program yielded in a buyer wanting to offer at least $200K less than the wholesaler purchased the property for. Buyer saw the property pending for a certain price in the MLS and completely missed or overlooked the details of the property submission including the HUGE income spread. The wholesaler was in a multiple offer situation; asking price in MLS was the starting point and offers went up from there. Buyer from buyer direct program's highest and best offer was at least $200k less than asking in MLS. That buyer was a joke; hope that was buyer was just a fluke or this program will die.
Hi Andrea, I personally followed your communication with one of our investors and even personally handled your submission when I saw it come in. When we saw it Pending in the MLS, I was surprised you even submitted it. I was surprised because I wasn't sure how any investor would be able to compete with a property that was advertised to the open market on the MLS and had multiple offers and was pending after vigorous bidding. As a general rule of thumb, investors aren't going to be able to compete with retail buyers. They make their margins in the initial purchase and of course in controlling cost.
I think they should of paid more attention to the property submission details; whatever they saw in the MLS was NOT the transaction I was offering.
Hi Andrea, simply put, an investor can't compete with retail buyers. The property you submitted had multiple retail buyers.
My property submission was not in competition with retail buyers though...different transaction, same property. The confusion was the fact the somewhere along the way the property was listed on the MLS. That's too bad because it doesn't appear unless they have local knowledge they can truly understand what you are offering.
Hi Andrea, I have to admit, I am terribly confused. In a email I was cc'd on dated Tue 1/10/2017 @ 8:16pm you stated, "There are several offers higher than that on the table already." and you also mentioned on this thread, right above you state, The wholesaler was in a multiple offer situation". Am I missing something?
I only mentioned that wholesaler multiple offer situation because they happened to have seen the property pending in the MLS. So I had to explain why it was listed but my transaction has NOTHING absolutely NOTHING to do with whatever multiple offer situation happening on the MLS and therefore you cannot throw out a offer price based on what you see on the MLS...
Andrea - i don't understand what you are trying to convey either.
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