I’m giving 110%, eating and breathing real estate but still haven’t bought anything. It’s been just over 4 weeks now since rolling into town, sometimes you just have to pay your dues so I’ve come to grips with it now. San Diego is so large and to find deals you have to be willing to cover some ground. This week I looked at about 30 properties and made 4 offers. I know the city pretty well after living here for 27 years but I had to buy a GPS to get swiftly around town to some of these unfamiliar locales. Most of the deals I looked at were on MLS and bank owned REO properties. They are commonly vacant and beat up. Some more than others, its common to see signs of past renovations like travertine tile or faux paint jobs from times when easy money and using your home equity as an ATM machine were so popular here. Many homeowners simply ripped everything out when they left and took it with them. A lot of lenders are opting to paint and carpet and then list for near retail price.
One deal I found early this week in the middle class neighborhood of Linda Vista was listed at $168k. It was a great little 50’s rancher 3/3 with a room addition. I pinned the ARV at $299k. It needed complete kitchen, 3 baths, paint in and out, windows, stucco, flooring, and landscaping. I estimated my rehab budget around $60k, it looked real good so I wrote an offer of $172k hoping to grab it quick. This bank only lists their properties on a website, you are not allowed to submit offers via fax or email. Its like the EBay of REO’s.
Whats neat about this system is its suppose to take out all the double dipping as the listing agent doesn’t even control what gets presented, the bank has direct access to the site and picks the best offer. You have to upload your proof of funds and everything to the site. On the last day someone overbid me by 500 bucks and got the house for $172,500. I should have sat at the computer all day.
My direct marketing is working as well, I’ve got offers out on several really exciting projects so hopefully those will come to fruition this summer. I’ve been networking with some other San Diego real estate investors as well, 2 of these guys have alot of offers out and have even offered me some of their deals so I’m real grateful. When you are chasing Short Sales here in San Diego its common to write offers on 15-20 houses and then wait for 6 months. This is the case with these guys and now some of the deals are getting accepted and they don’t want them all. I feel happy with the progress I’ve made during the short time we’ve been back but still anxious to break ground on the first rehab. Stay tuned to see what I’m going to end up with for the first project…
PS. I’m Still Looking To Network With More San Diego Investors, Wholesalers, REO Agents, Short Sale Agents, Contractors and most of all Anyone Who Knows of a Cool House For Sale, Friend me on Facebook or Contact Me here.
PSS. A Special Thanks to Peter for the lead you sent to me on the Real Cool house!