Making Offers Regularly

I know it can be exciting to get into investing and then be quite a let down when a great deal slips out of your hand by getting a rejected offer. If after making 10 offers, the buyer is still getting rejected, he or she must ask if the price is too low or the terms too demanding. Additionally, in many markets it is a seller's market now and buyers are going to have to step it up to keep it moving.

It is true that getting rejected is no fun. However, if we are going to be in the wholesale business of real estate.....get used to it. When I am talking about working you business I am talking about LOTS of good strategic offers. If you need help with the offer formula contact a coach. Remember, we are not buying our dream home in most cases. We are looking at houses that need help and lots of it.

Lots of offers with the right formula will equal success.

I have been on this site and read and read but still don't know how to make an offer. I mean as in paper doc or verbal offer. Can someone explain. This is so confusing.

I will try to got back to work, just for some reason, making offers take a lot energy out of me. LOL I will keep up. motivation

I must tell you that I really do like your delivery and presentation of your message. Your view from the other side of making offers will help some people to see what they may have failed to see or understand. Whatever the reason is that offers are not being made understanding the number of offers it may take to get one accepted is very important. If you make zero offers there is zero offers accepted. If you make one or two offers it would be like taking a chance on the lottery and is possible that an offer might be accepted but at the same time highly unlikely. You might knock on 99 doors or make 99 offers and get all "no's" but door or offer 100 could be a very profitable "yes"

Being afraid to make the offers is something the want to be invester needs to work on. I know from experience and just wanted to share. The good news is that the desire is there and taking the action to be on this site and conversing about the subject is a start. That is really important to start or we never get anywhere.

Just thought I would share my thoughts and acknowledge your post and its content. I appreciate you Roy. Thanks

When someone is new and timid I would prefer them to make several bad offers than no offers at all. A person that can make offers will always make more that the person who makes none.

In my own case I will make offers on properties that I may consider to be borderline. I am the type who would always rather take a swing instead of doing nothing. Should we make it a habit of making bad offers. No. But I will tell you that it is easier to help someone who is making regular offers, but simply needs adjusting, than to help the person who makes little or no offers.

I have always seen this as a lifelong work. As a result we will always be making adjustments to what we do. Offers, however, will always have to be made in order to make money.

every NO you get, gets you closer to a YES!!!! Think positively, not negatively!!!

also, remember Matt's strategy: 25:1 !!! it's not a 2:1, or a 10:1, its's 25 offers you have to put in, to get ONE accepted.

its always a pain to get in touch with the listing agent.I come across nice deals on realtor.com and can never get through to the ever-so-busy listing agent that has 100+ homes to sell. When or if I finally do reach them, theyve already accepted an offer and wrote up contracts. I've missed out on 2 great deals this week and I'm pretty disappointed.

Like Dean says, if your not making offers your not making any money. I'm about 20 offers in with my agent and I'm waiting to put 5 more offers out so I can get 1 accepted. 25/1 it's a numbers game.

Annann, you asked about making an offer. All offers need to be in writing to be a binding document. Verbal offers carry no weight or responsibility.

If you are making an offer on a MLS listed property, you will need to used an approved Realtor form that is acceptable with the MLS board - your agent to the listing agent can write it up for you.

If you are making an offer on a non-MLS property your offer could be in the form of a letter with a contract to follow or simply presenting an Offer to Purchase contract. You find some forms on these websites:

http://www.rocketlawyer.com/
http://www.legalzoom.com/
http://www.lawdepot.com

Hope that helps.

I like what Roy said about making bad offers is better than no offers. That is so accurate! This is how new and veteran investors learn the market place It is also critical to new investors for getting their offering and follow up systems in place. This is how true team building takes place.

Michael

I was reading most of the comments and realized, I'm not making any offers because I am having a hard time find buyers. Should I still be making offers
without having any buyers just for the experience?
Thank-you, Sheryl

However, I have not had any luck with the real estate agents I have attempted to work with here in Atlanta. I have put a lot of time reviewing listings and expecting to go view these properties with my agent, only to be let down with 1. the agent isn't prepared or 2. they don't even show up. I feel like I am spinning my wheels here. So, today here I go again on the phone contacting the Keller Williams and Remax offices to see if I can find someone willing to work. Is this just an Atlanta thing?

Thank you,
Lisa

Sheryl, I would definitely put together the acquisition side of my business while putting together a buyers list. If you have a great deal and advertise it you may find some great buyers that way. One thing is for SURE. No offer NO CHANCE of making money!

Lisa, I would change your approach. It sounds like what you are doing is not working. Maybe come from the angle of what you can do for the agent, not what they can do for you for free! Saying you are going to make them a ton of money because you are going to buy a ton of properties does not work well UNTIL you produce. If you were an agent why would you work with you? Remember, this is their job, this is how they feed their families, they don't want to spend any time doing things that they are not getting paid for. What can you bring to the table other than saying you are going to close a lot of deals and then ask them to do a lot of up front work for you. Really think about your presentation.

Good Luck,
Michael

Hi Roy, we have sent questions in and you were the one that answered several of them. I just wanted to say that your information is always insightful and helpful. You have genuinely helped us. Thank you!

Regarding making offers, could you find out what is the reason investors are not making offers? Then we'd know how to help each other. I don't think anyone is just lazy, stupid or dumb. So what is it? If it's fear, then we could focus on how to overcome that, as in, "here's how you feel safe about the offer".

One- the realtor may say your offer is ridiculous, yell at you, tell you what a dip you are, refuse to submit it, etc. You'd be really really embarrassed, or.....
you would realize, "Hey this isn't the realtor for me!" Even better, a strategy would be, right now, to take these steps to make sure your realtor submits your offers, (it doesn't matter if they think you're dumb- we can cry all the way to the bank to make our nice fat deposit of our profit) We just need them to know, this is what we do, it works, and "will you submit all my offers"?

Then you can make the offer with the realtor CONFIDENT that they'll do it.

so then move to the next reason for hesitation, maybe it's that they can't find properties, then refer them to a lesson on that. If it's fear the seller will say yes, then train on that. And just rejoice that the students are progressing and you are extremely valuable.

Just my thought.

Michael has a great point. To think of things from the realtor's perspective.

If they make low-ball offers they usually have to present them to another realtor, the listing realtor. If they haven't done much of that, they may be very reluctant about submitting offers. I'm thinking though that we can help them with that by letting them know how to present the offer.

I have to run into town, but does anybody have the time to write in on what to tell the realtor about one, what is in it for them and two, how to present the offer through other realtors?

I was reading the very insightful comments and have been wondering about this for a while.

I understand it's necessary to make ALOT of offers in order to get ONE accepted. Up to this point, it's been a very time consuming effort. My agent sent me a list of 45 properties. Which I narrowed down to three for us to look at, of which I'll probably make an offer on two. At this rate I can't see making 25 offers to get one accepted in the next 30 days.

My question is, would it be feasible or just plain crazy, to put out offers on properties sight unseen just based on comps and mathematical formulas, and then if any of those get accepted, only then go out to the property to evaluate rehab costs and adjust the offer accordingly, thereby saving myself and my agent alot of time and getting alot more offers out there?

Do boarding houses come under the category of commercial properties or residential? I am interested in how they work (particularly in the South and on the East Coast. How do you market them? I have heard of several in Southern California (Antelope Valley)where individual rooms are rented out for $400 or $500 per month, w laundry & kitchen privileges included. Recently, in the San Gabriel Valley of So Cal, there have been issues about over-crowding, safety & sanitation issues as well as backlash from some homeowners in the neighborhoods where these residential home rentals are located. This matter has been brought before the L.A. City Council. Anyone with any info or experience on this topic, please feel free to contribute to this topic. With appreciation, Thank-you in advance for your response in any state you are.

Hi Simon, So what you mean is that I can just tell my agent that I want to make an offer on such and such property?
And do you have to make an offer and it have to be approved before you show it to your buyer? Or do you show them the picture but not the property of the house and see if they are interested first then you make an offer? How would you know that your buyer will buy your property?
I haven't make any offer so far, because I have a hard time making one. But that will not stop me, I will keep going and going and going and goingggg. Thanks
Someone please HELP!!

Ann

I just want to respond to Thomas Keyes about agents having 100 listings or more. It is possible that is a true statement. However, that agent would be so rare, well it just isn't an everyday thing. Do not be intimidated by an agent. I am convinced that if you are rejected by an agent it is almost always ignorance on the part of the agent. The agent either does not understand an investor or is not willing to put in the work to succeed. Is that really someone you want in you corner? Work hard and you will get out the needed offers. Finding an agent does take work. Keep at it and it will pay off.