I finally have my first deal in hand and i'm ready to jump into the fire!!! I have just had my first offer accepted on an REO in New Jersey. It is great to know that i have come 50% of the way, the remaining journey will be assigning the deal.
After starting the DG book end of February and temporarily getting side tracked from my goals with investors looking to involve me in commercial properties buying and selling, bulk reos selling and such (all of which was a good learning experience i must say), i finally put a grip on what i was doing and fucused on one thing ... finding REO's in New Jersey and bidding on them really low.
I have found that reading this site and other alike, it is very easy to get excited and want to do a bit of every strategy out there - foreclosure bidding, short sale opportunity seeking, FSBO negotiating ... but it is just too much and too many different approaches and i find that staying with one or two strategies works best to stay on track and geared up.
So, after readying all these posts on "you can assign", "you can't assign" and everything in between, i decided that i would put out 30 offers with my agent and assign them. We just sent the offers last week and since then I have had some counter offers, which I countered back, and some have declined me, but FINALLY I got my first acceptance.
I have found an REO prop which is a 3/1, 1182 sq ft ranch. I have not seen the place yet, so i can't tell you what it is like inside ... however, i don't really care what it looks like, because i know i can find investors who are complete rehabbers and at the price they would get this place for, it would be a great investment. The original price was 169,900, then the bank dropped the list price to 130,000. I submitted my first offer for 98,618. Within a day, they told me they had to see highest and best, as they had another offer in consideration. I countered 109,575. Simultaneously, their list price dropped to 123,600.
The selling agent said the counter was good and the bank will accept it. My plan now is to market the heck out of this prop, get it assigned for 10,500 and move on!!! The prop is a good investment and even better rental home. Its FMV is 219,150, if offered 50% of FMV, leaving the end buyer with a solid 99,075 equity before repairs and a 45% under FMV.
I am going to be posting my new website in the next couple of days and working really hard at my marketing of this home.
I hope to have a final success story to give to everyone and more after that too. There are just so many REO's out there, i MUST succeed!
Mid Atlantic Property Managment, LLC
Live life today, because you never know what tomorrow can bring!