You must be logged in to reply to this topic.
-
Some of the types of 3 offers I would make:
cash
0% down, 0% interest
half now, half in 5 years (or 10)
subject to
small down payment, two notes each lasting 5 years one starting after the otherOf course they want all cash. Our society has trained itself for instant gratification. You will need to make offers that work for YOU. Offer about 50c on the dollar for cash, up to maybe 85% of asking price if they don’t owe anything and will do 0 down and more importantly 0% interest. Keep looking for those free and clear properties. About half the calls I field are from folks like that.
If they owe on the note, they will need to be willing to take less and maybe nothing at all money wise. If you are getting them out of their payments, that is worth something as well.
Can anyone give me an example of 3 offers and letting the seller pick the best?
What I’m finding is properties with underlying loans and the sellers wanting all cash.
How do you approach them with the idea of making payments to them or giving them a choice of how they get paid.
Example…$50K ARV..underlying loan 20K..needing only 5K in repairs. That should make the numbers easy for ME to understand.
Thanks to all and especially Jackie for answering questions.
This is a great site BTW.
Great $uccess,
Dee-Texas
I make the same kind of offers that Greg mentioned but I’m careful to steer the seller in the direction I want them to go in – which is always seller financing.
How can you do that?
Make the all cash offer much much lower than the seller finance offer
Make them wait 30 – 60 days to close on an all cash offerMake the seller finance offers closer to their asking price
Be ready to close in 2 days on a seller finance offerBut even more important than all of this is to spend the time to talk to the sellers to find out what they really need
If they insist on getting $50,000 in cash
what are they going to do with it?
if they need it for a down payment on another house
maybe you can help them find that next house with no money down, or
maybe you can help them structure seller financing when they buy the next house so they don’t have to go through a bankIf they need a car, you could buy the car and make the payments. It’s better than writing a $25,000 check.
Seek and ye shall find — that’s the name of the game in real estate these days.
But it requires time with the seller to ASK QUESTIONS and discover that they need and how you can give it to them
without paying cash.Peter Fortunato’s Real Estate Acquisition class in June in Tampa is a great way to learn the skill of making multiple offers that
get accepted the way you want them to!
Greg
If there’s opportunity I’m at their doorstep within a few hours.
I would never mail an offer unless they are out of town.
I never – ever ask what they want for the house. That’s a big mistake.
I get mortgage information, payment info, back payment info if necessary, then
For subject to/seller finance type deals, I tell them ” this is the best I can do” and offer 1 – 2 offers.
For wholesale deals, I’ll make an all cash offer that is really really low, then 2 seller finance offers for substantially more.
Jackie, at the PML class in April you had a section in your binder about the 7 questions you ask sellers when you first talk to them. Am I to assume you make offers based only on those 7 questions? If so, when do you take the time to discover their needs? I have been using your 7 questions and it does cut down on the wasted time.
If I see opportunity, I then call them back, ask if the house is available, ask what mailing address I can send an offer to, then ask about price and try to get them down. I know you said you don’t ever even bring up price, but for a neophyte such as myself, I need to protect myself by finding out what they are hoping to get out of it. I can then use that to compare to what I feel the home is worth (very recent sales, cashflows as a rental, etc.) and then bring them down.
You must be logged in to reply to this topic.
