It starts for me on last Friday when the new pesky Foreclosures were released. We print the list of foreclosed properties for Port Huron area & st. clair count. We do some homework on the new ones, we check to see if the Assest Management Property Managers are getting a clue and reducing the prices. Once done, I have a list to look at.

Its Saturday, this week, we ran out to look over those selected properties. Some we like, while others, we hate. Even with floor plan changes, you will fine some houses have just reached its life span and its now functionally obsolences. It must go and that is a whole new story but later. Once we have a good list with approximately the repair cost, set up with our contractors for Monday.

Well its Monday, and off the races we go to look at half a dozen or more of thos Bank Owned Forclosures. We start in Port Huron, and work away around the County going through each property. Once done, I take the final figures from our contracts and put them with my other numbers and we are good to make offers.

That night we are emailing and calling investors with the deals of the findings and creating electronic purchasing agreements that we are mailing to the investors along with our contract with them. They sign and fax back to us.

Tueday, its show time, our in house broker, aka Bonnie, is off and running with cover letters describing the condition of the house, type of work that has to go into the house and the signed Purchase Agreement. She makes a call to the agent and shares with them that the fax in on their machine. Usually, she walks them through the PA …

This is the funny part, some Brokers and Agents agree with our offers and others are in shock. Those that are in shock about the price we just submitted is thinking we are still in a SELLERs market and its appreciating.

Then comes the Assest Management Companies. They think since we are outside of Detroit, they can push the prices up. Here is an example, Agency A has this Foreclosure, prices keep dropping, no offers since it needed work and the price was crazy high. Talked to Agency A and they agreed. Guess what, AMC was not happy with Agency A so they moved the contract to Agency B. Here where it gets funny, Agency B put the price back to the highest offering or where Agency A started. After 6 months of reducing the price where they were within 20k of what the property should have been started to be offered they moved it back up 45k above. Now that is funny.

So, offers are submitted and the game begins … we fine out usually within a day or on some … they reject immediately which I find interesting since the Broker tells Bonnie that they should take the offer. Some of the other offers come back with counters that are good and some are a joke taking 3k off the price. Get real!

So buy the weekend we usually have one and that is going to the investor to close. How exciting. But the fun does not stop, we start over again with new ones and don’t forget the rejected ones. They get put into a cycle when to get bid on again and at what price.

So the chase continues for those pesky foreclosures found in and around Port Huron Michigan, St. Clair County.

This Bob, signing off for now!