From: Apprentice Millionaire
Paul H did a splendid job with his post under the topic of "Some questions???"
I pulled out of his post the paragraph about the "Shotgun strategy". And it appeals to me.
So I have a few questions, and those of you who apply this strategy may like to reply (and I will be grateful for that!).
a) Paul writes that in an area that I would have researched, I would make a 75% of FMV on ALL properties. So to what depth do I need to research the market to find FMV? Can I not just make offers at 60-70% of FMV to compensate for my lack of research? If I am going to make offers which might be rejected in the majority of cases, then I should just go for it. Or should I not?
b) Paul says make offers on ALL properties. Surely that means that I may not be able to inspect each and every property on offer. Indeed, I would make the majority of my offers sight unseen! In order to avoid the ones that have problems, that would mean that I would obligatorily include a "subject to building inspection" clause in ALL my offers. Am I correct?
c) Paul also writes that novices "can do this; and also helps to get used to dealing with agents and the black-art of property negotiating." How much negotiating needs to be done? I would say that if I am looking at making 100 offers, and out of those I get 1 or 2 well-bought properties, I would not need to negotiate much. In fact, if the offer is rejected, I would just go: "Next!"
d) Making offers on ALL properties will call for some finesse and some scheduling. I cannot imagine myself dropping a bundle of offers on a RE agent's desk. How do those who use the shotgun technique do it? 2-3 properties per RE agent per week? Talk to different agents within the same agency?
Finally, the reason that this appeals to me is that the first IP I have bought was one of the "three D's" as Geoff Doidge puts it (Death, Divorce, Desperate). In my case it was divorce. But I only found out after settlement, and I was indeed surprised to see how my low offer had been so quickly accepted. This strengthened in me the strategy of looking for the motivated vendor, and this shotgun strategy could be very useful!
Cheers
Apprentice Millionaire
(aka Jacques)
Paul H did a splendid job with his post under the topic of "Some questions???"
I pulled out of his post the paragraph about the "Shotgun strategy". And it appeals to me.
So I have a few questions, and those of you who apply this strategy may like to reply (and I will be grateful for that!).
a) Paul writes that in an area that I would have researched, I would make a 75% of FMV on ALL properties. So to what depth do I need to research the market to find FMV? Can I not just make offers at 60-70% of FMV to compensate for my lack of research? If I am going to make offers which might be rejected in the majority of cases, then I should just go for it. Or should I not?
b) Paul says make offers on ALL properties. Surely that means that I may not be able to inspect each and every property on offer. Indeed, I would make the majority of my offers sight unseen! In order to avoid the ones that have problems, that would mean that I would obligatorily include a "subject to building inspection" clause in ALL my offers. Am I correct?
c) Paul also writes that novices "can do this; and also helps to get used to dealing with agents and the black-art of property negotiating." How much negotiating needs to be done? I would say that if I am looking at making 100 offers, and out of those I get 1 or 2 well-bought properties, I would not need to negotiate much. In fact, if the offer is rejected, I would just go: "Next!"
d) Making offers on ALL properties will call for some finesse and some scheduling. I cannot imagine myself dropping a bundle of offers on a RE agent's desk. How do those who use the shotgun technique do it? 2-3 properties per RE agent per week? Talk to different agents within the same agency?
Finally, the reason that this appeals to me is that the first IP I have bought was one of the "three D's" as Geoff Doidge puts it (Death, Divorce, Desperate). In my case it was divorce. But I only found out after settlement, and I was indeed surprised to see how my low offer had been so quickly accepted. This strengthened in me the strategy of looking for the motivated vendor, and this shotgun strategy could be very useful!
Cheers
Apprentice Millionaire
(aka Jacques)
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