Normally, the banks set a price on properties too high because they are in the business of lending money, not real estate, and as a result often they do not have a good understanding of the real estate market. Also, most banks are large, they have specific policies on reducing the price on a house based on how long it has been on the market.

Realtors’ (especially REO realtors) position is different from the investors’. They know what a certain property will probably sell for, but they have to give a high estimate of value in order to get the listing. The banks get some realtors to give them a so called broker’s price opinion, which is nothing more than pics plus their discounting the property for certain things. The bottom line is when everything settles, the bank tells the realtor what to list the property for. Expect the listings to be high but do not let that stop you from making offers.

Well, go ahead and make low offers! You are the one with the cash so you have the power, so do not worry about what anyone else thinks. However, sometimes you may run into realtors who think they are the owner. They will discourage you from making the offer because it is too low. You will be the judge of that. If this realtor does a lot of REO business and is trustworthy, you may take their advice and try to build a relationship with them. But if you feel that you are not getting the best advice, you may want to politely remind them that they are required to submit all offers. Furthermore, if you think that for some reason the realtor is not submitting your offer (it happens, but very seldom; most are honest, there are a few bad ones), go to the broker and ask for the rejection notice from the bank.

What is the most important, make low ball offers! I usually start off every offer at least 10-20k below list price, unless it is listed for like 15k and I know they are not going to give it to me for a dollar.

For example, if the property is listed at 25, I would start no higher than 15k and see what happens. I may even start at 10k or lower, depending on the house, but definitely low.

Making offers is what makes dreams come true and changes peoples lives! Start out low every time; when it comes to offers, it is always easier to go up than come down.

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Leonardo of Pisa, aka the mathematician “Fibonacci”, published his Fibonacci sequence in 1202. Fibonacci came upon his now very famous sequence of numbers when he was trying to breed rabbits and figure out how many pairs of rabbits he would have at the end of one year based upon their breeding behavior. This is just the kind of no-nonsense approach that Forex traders are into.

Mistakenly many individuals consider mathematical abstraction as frivolous; however it is rooted into real world mathematical applications. The Fibonacci sequence is useful for making us aware of and then explaining those hidden patterns around us daily.

So how is the Fibonacci sequence applicable to currency investing? Savvy investors know that there are patterns to the movements of the stock and currency markets which can be seen by studying the past behavior of investors. The market truisms “buy low, sell high” is based on an understanding of these market patterns.

The reason that investment market patterns are so well hidden is because “up close” they cannot be seen. Day to day, hour to hour fluctuations in the investment markets cannot be predicted with any accuracy. But certain overall trends that extend over longer periods of time definitely can be. And savvy investors, including Forex traders, have successfully been using Fibonacci’s number sequence to take advantage and make big profits.

The Fibonacci sequence is a series of numbers in which each successive number is the sum of the two previous numbers. So it goes 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and into perhaps infinity. There are a number of interrelationships held within these numbers; for instance, any given number is approximately 1.618 times the preceding number, and 1.618 happens to represent the ancient Greeks’ “golden ratio”–considered to be the supreme essence of balance (and balance is the ultimate key to successful investing).

Arcs and retracements are two of the most widely used applications of the Fibonacci series by investors, including Forex traders.

A Fibonacci chart is made of three curved lines which represent support levels, key resistance and ranging. A trendline is first drawn between two points (generally the high and low points over a given period of time). Three curved lines are then drawn which intersect the trendline at the 38.2%, 50% and 61.8% points. Decisions about buying and selling are made at these points (i.e. – when the price of the commodity in question reaches these points).

In the world of investment, retracement relates to the reversal in movements of the price of a stock. An impressive reversal can counter the prevailing trend in the stock. Successful progressive investors focus strongly on the retracement patterns and possibilities. The Fibonacci method of retracement evaluates the prospects of the price of a financial asset being more superior than is average as well as supporting or resisting at key Fibonacci levels before continuing on its original course. Between the two extreme points a trendline is drawn and then its vertical distance by the ratios of 23.6, 38.2, 50, 61.8, and 100 percent, according to Fibonacci.

Multitudes of high-level traders gain with the Fibonacci retracement method. It aids them in finding the most strategic placement of transactions, their target prices and stop-losses. Gartley patterns, Tirone levels and the Elliott Wave theory are other technical tools that make use of retracement.

The reason that the Fibonacci sequence is used in investing is simple: it works! Forex traders in particular in particular seem to find it useful in making profitable trades.

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