How to Make Offers and Expectations

Jul 27, 2010 Comments Off on How to Make Offers and Expectations by

Your success in the real estate investing business stems from your ability to make quick offers on the properties. Along with making offers, you need to learn the areas that you are working (farm area), by researching comps (sales date from recently sold properties) which is part of your due diligence.

We have all heard the stories of another investor meeting with the homeowners right after you left, and scooping up the deal from underneath you.  Why does this happen?  As a new investor, I had had to learn the hard way that you need to make an offer while you’re face-to-face with the Motivated Sellers for the first time.  Many times, your competitors may go view the property, talk with the sellers and then tell them that they will be back with an offer after they ‘run the numbers’.

This is where you can beat many of the real estate investors out there.  Be prepared to make an offer!

When a Motivated Seller calls, I like to get some basic information to determine their level of motivation, make the appointment and then find out the details of the property, location and condition. Leave yourself some time to find out what has sold in the area (Comps). Then drive by those comps to see the condition of the property and run the numbers beforeyou meet with the Sellers.

You will be way ahead of the game when you meet with the sellers, because you will be prepared to make the offer! The more prepared you are before you meet with the sellers, the bigger the chance you will get the deal when your competitors are sitting at their office running their numbers.

Another question I like to ask is, ‘What have you done up until right now to sell your house?  Who have you talked to?  Who has seen the property?’  After they answer, you can ask, ‘Who do you have coming after I leave?’  They may have called every ad in the paper, because they need out ASAP.  If there’s good money to be made on the deal, you can be sure others know about it.  You need to move fast.

Make an offer on the property on your first visit and learn to accept rejection and learn the art of negotiation.  Adapt the mindset that it will take 100 no’s before you’ll get a YES!  Track how many offers you make compared to how many deals you bring in. It may take 40 no’s, 20 no’s or maybe 5 no’s you need to hear before you bring in another deal.  Whatever you do, do not let yourself get down because no one’s accepting your offers.  Just keep making offers and things will start to happen.

Too many people give up right before they see the fruits from their hard work.  To become a Successful Real Estate Investor or DealMaker, you must learn the lessons that life will give you. Learn to bounce back from the struggles or hardships that may happen on the road to success.

Making an offer on a property for the first time is nerve racking! It gets easier and easier as you go.

It’s tough at first, but it will get easier and you’ll become more comfortable and know what to say as time goes on.  I wish I could have recorded my first meeting with a Motivated Seller.  It was rough.  Not only did I break a rule and not meet with BOTH decision makers, I had to fumble around and make it sound like I knew what I was talking about!  I made an offer to make up their back payments to save their credit and then make their mortgage payments for them.  She was excited!

They already had a new place to go, and it was a win-win situation.  The problem?  I met with the wife, when I could have just waited 2 hours to meet both the husband and wife.  I was a Motivated Buyer, hungry for a deal.  Who knows what she said to her husband.  She could have said, ‘Some guy came over and said that he’ll make the payments on the house for us.’  Maybe she forgot to mention everything else and he may have said, ‘Now why would anyone do that?  Something’s fishy!’  They never returned my calls or responded to my letters.  Lesson Learned!

Be prepared to make mistakes and miss a few deals in the beginning.  You will learn 100 times more by doing it, rather than reading about it.  With Real Estate Investing, there are millions of unique situations out there that would be impossible to write about in any book or course.  You will learn from experience.  Keep yourself motivated, have fun, and MAKE SOME OFFERS!

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