Bidding advice?
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Bidding advice? (by Ted [NJ]) Feb 27, 2024 9:53 AM
       Bidding advice? (by Just Tim [AR]) Feb 27, 2024 10:48 AM
       Bidding advice? (by Deanna [TX]) Feb 27, 2024 11:04 AM
       Bidding advice? (by plenty [MO]) Feb 27, 2024 11:15 AM
       Bidding advice? (by Ted [NJ]) Feb 27, 2024 11:26 AM
       Bidding advice? (by Ted [NJ]) Feb 27, 2024 11:27 AM
       Bidding advice? (by Ray-N-Pa [PA]) Feb 27, 2024 3:07 PM
       Bidding advice? (by S i d [MO]) Feb 27, 2024 4:12 PM
       Bidding advice? (by S i d [MO]) Feb 27, 2024 4:16 PM
       Bidding advice? (by 6x6 [TN]) Feb 27, 2024 7:44 PM
       Bidding advice? (by Ken [NY]) Feb 27, 2024 8:06 PM
       Bidding advice? (by Jim In O C [CA]) Feb 28, 2024 3:38 AM
       Bidding advice? (by Vee [OH]) Feb 28, 2024 8:15 AM
       Bidding advice? (by Ted [NJ]) Feb 28, 2024 10:14 AM
       Bidding advice? (by Ted [NJ]) Feb 28, 2024 10:18 AM
       Bidding advice? (by Ted [NJ]) Feb 28, 2024 10:51 AM
       Bidding advice? (by Vee [OH]) Mar 1, 2024 11:47 AM

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Bidding advice? (by Ted [NJ]) Posted on: Feb 27, 2024 9:53 AM
Message:

Anyone have bidding tips? Here in NJ houses go like hotcakes. High interest rates no damping effect. Thing is, a lot of investors go in with all cash (seems to be mostly wealthy immigrants who use their parents money to buy). How do we landlords without boatloads of liquid cash make offers that can actually win? Do 30% or even 50% down? More? Keep losing on bids - was not like this pre-2020. --70.158.xxx.xx




Bidding advice? (by Just Tim [AR]) Posted on: Feb 27, 2024 10:48 AM
Message:

You need to find off-market deals and be the only one or one of a small number making an offer.

If it was easy, everyone would be doing it. That's why everyone's on MLS.

Google How to Find Off-Market Real Estate Deals to get some ideas. --98.174.xxx.xxx




Bidding advice? (by Deanna [TX]) Posted on: Feb 27, 2024 11:04 AM
Message:

When you bid in public, you compete with the public.

One key is to find things that aren't advertised to the public. And then make it so easy that someone who needs a certain amount of money to do x will sell you a house they don't need, so they have the funds to do what they want to do. X doesn't need to be the value of the house; x just needs to solve their problem.

So, sources go in cycles. Sometimes you have great success with word-of-mouth. Sometimes you have great success with spotting handwritten fsbo signs (a signal that they don't want to maximize their house's value, or share a commission with someone who can get them a better price, they just want a fast and no-hassle closing). Sometimes you have great success with tax sales.

Apart from some vacant lots, I haven't successfully bought anything at tax sale since October, 2020. However, I bought one place by word-of-mouth from some heirs who wanted to liquidate their mother's house after their stepfather's life estate was over when he passed. (That one took about 16 months from yes-we'll-buy to yay-it's-ours because there was a Sticky Heir. There's always a Sticky Heir.) And I bought another house for the cost of unpaid taxes from someone who just wanted to be rid of it.

Don't always fish in the same pond, and don't always fish where everyone else is fishing, especially when they have sonar and you don't. If you're a buy-and-hold person, it's okay to grow when it makes sense, and maintain what you already possess when it doesn't make sense to grow. If you're a flipper, you need a constant stream of supply, and circumstances aren't ideal right now. --137.118.xx.xxx




Bidding advice? (by plenty [MO]) Posted on: Feb 27, 2024 11:15 AM
Message:

Some times YOU pay what it cost --172.59.xxx.xxx




Bidding advice? (by Ted [NJ]) Posted on: Feb 27, 2024 11:26 AM
Message:

Thanks for this very helpful advice! Iíve been hopping at houses that just come on the market. College area. Clearly this is not effective in this hot market. The FSVO and tax sales makes sense. What do you think about the u solicited ę†I will buy your house†Ľ letters? When I get them in the mail I get ticked off. But does this technique work for those who send them? Ö The ę†sticky heir†Ľ is nice to know. Sounds like patience is a must when dealing with these sales. Iím n out a flipper but a bit and hold and rent and rent and rent type of person. Waiting is okay, just this market is so inflated in NJ --104.28.xx.xxx




Bidding advice? (by Ted [NJ]) Posted on: Feb 27, 2024 11:27 AM
Message:

I will definitely look up How to Find Off-Market Real Estate Deals. --104.28.xx.xxx




Bidding advice? (by Ray-N-Pa [PA]) Posted on: Feb 27, 2024 3:07 PM
Message:

When I want to pick up a place, I talk with other investors, not the MLS. Investors are more likely to carry owner financing as they understand cash flow.

So if you don't feel comfortable talking with private sellers not quite yet, investors are easier as they understand what we are looking for --24.101.xxx.xxx




Bidding advice? (by S i d [MO]) Posted on: Feb 27, 2024 4:12 PM
Message:

Tim and Deanna nailed it... don't buy where and when everyone else is buying. Going toe to toe with other investors only means you will pay top dollar. That's why people like to Sell at Auctions... the excitement and bidding wars drive the price above where it normally goes.

Hunt for deals that no one wants. Fresh MLS listings are the feeding frenzy where one rarely finds good deals. You need to find the stuff with little or no competition. My strategies include:

1) Abandoned, unlisted property with boarded up windows and tall weeds. If there's broken down car in the front yard... even better!

2) Tax lien sales that are on the 3rd offer or later. In my state, that also helps you get title much faster than the "fresh" properties that most people want.

3) Bandit signs (look up on youtube).

4) Mailers en mass to blocks of addresses.

5) Commercial property that is underutilized.

6) Heirs of landlords.

7) The dogs of the MLS... look for stuff that's been sitting for 80-90 days. That's the typical first round listing length and the agent may be motivated to help negotiate a price reduction and/or cut their commission to get a sale so they don't lose the listing to another agent.

8) Word of mouth. Any time you meet up with someone--new person or an old friend--remind them you're looking to buy real estate and do they know anyone whose thinking of selling. You can be casual about it....

Friend: "Hey Ted, how's it going?"

Ted: "Hey there! Just living the dream and looking for another house to work on. Know anyone who has something?"

I've bought 5 houses with just using word of mouth. The rest came using the techniques listed above.

--70.57.xx.xxx




Bidding advice? (by S i d [MO]) Posted on: Feb 27, 2024 4:16 PM
Message:

One more strategy I almost forgot: get to know the reputable "wholesalers" in your area. These are the guys and gals who do the hard work of finding off market listings and getting them under contract. Their goal isn't to buy the house; rather, they want to flip the contract to someone else without taking title. In other words, they add this phrase to their name as the Buyers "or assigns" meaning they can assign their purchase contract to anyone... for a fee.

Get on their Buyer's list and let them know if they have any contracts getting ready to expire in 2-3 days you're ready to close fast with cash. I've gotten 2 properties this way. The assignment fee from the wholesaler was only $1,000 in one case and $1,500 in the other. So I got the discounted property, the wholesaler's reputation with the Seller was saved, and they made a few bucks. Enough to keep me on their list anyway. I still get calls occasionally for a few, but I'm not doing much residential right now. Only doing commercial.

--70.57.xx.xxx




Bidding advice? (by 6x6 [TN]) Posted on: Feb 27, 2024 7:44 PM
Message:

--76.129.xxx.xx




Bidding advice? (by Ken [NY]) Posted on: Feb 27, 2024 8:06 PM
Message:

Ted-yes we buy houses letters work,occasionally i get yelled at but who cares occasionally i get a deal --73.177.xxx.xx




Bidding advice? (by Jim In O C [CA]) Posted on: Feb 28, 2024 3:38 AM
Message:

You need to find the properties before they go to auction. In California a small handful of bidders will bring a million or two in cashiers checks to buy property. --146.70.xxx.xx




Bidding advice? (by Vee [OH]) Posted on: Feb 28, 2024 8:15 AM
Message:

Put purchase money into a paper sandwich bag, take it to the auction, don't over spend the bag. It is always buyer beware - caveat emptor, so inspect as quickly as you can and a title search is imperative to clear up any easements or liens from utilities or others. --184.59.xxx.xx




Bidding advice? (by Ted [NJ]) Posted on: Feb 28, 2024 10:14 AM
Message:

Thanks for all the helpful tips, Sid. It sure does look like a good deal on an MLS house is all but impossible. Iím going to try your various techniques, such as really going after off market even houses not yet on the market. If a distressed house is not on the market, do you send a letter to the winder or leave a note at the door? Wholesale dealers also is intriguing. I didnít even know about these folks. I word of mouth asking and advertising is another thing Iím going to be more upfront with. I guess all I need then is to keep my lawyer in standby for quick closings and contracts. --104.28.xx.xxx




Bidding advice? (by Ted [NJ]) Posted on: Feb 28, 2024 10:18 AM
Message:

Jim and Vee (and anyone interested): how do you buy a house right before it goes on auction? And if you bring lots of cash with cashiers checks, do you also bring a contract to cover yourself in case of liens and serious problems with the house? It seems mortgages are a hindrance to buying any house these days. Is this so? Iíve done cash in the past but was hoping to start using mortgages - at least half. --104.28.xx.xxx




Bidding advice? (by Ted [NJ]) Posted on: Feb 28, 2024 10:51 AM
Message:

Ray: do you just exchange contact I go with investors whenever you bump into them at sales, etc? Such as, give me a call if you have any properties you are unloading? --104.28.xx.xxx




Bidding advice? (by Vee [OH]) Posted on: Mar 1, 2024 11:47 AM
Message:

Ted, mortgages are very hard to do as the underwriters want property access to inspect - this is nearly impossible in a timely manner - wait 45-60 days for deed after using your own funds to fully pay for the property. So when I was busy doing this I took along 7 or 8 cashiers cheks made to the county treasurer and used what I had to get the 10 percent down and arrived a few days later with the balance due, the leftover checks were carried in to the next auction a month or 2 later when a property peaked my interest. --184.59.xxx.xx



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