Make Offers

Great answer the mentor told this student that 2 offers would not get him where he wanted to be. You have to constantly make offers every single day if you want to make it in this business you have to put the time and work in.A Hundred offers is 10 offers in 10 days or 5 offers in 20 days. Out of a Hundred offers your bound to at least get 2-3 offers accepted. So it's all up to you and your mindset to be able to approach your goals.The mindset is something Dean talks about all the time which is not giving up but applying your thoughts into action. Thanks Dean for all of your insight and expertise!

Homehelper

I need help with the formulas to fallow when coming up with offer price. When we are placing offers with realtors and FSBO.

I'm just confused with all this different formulas and I want to make sure I'm doing it right.
Thanks

In the program, we have devised multiple approaches for calculating your offers, and all of these formulas work in specific situations. But ultimately, there is no shortcut that is an accurate replacement for these three words of counsel: "KNOW YOUR BUYERS." As a wholesaler, you are making offers and securing contracts on behalf of your cash buyers. You need to know what they need to be successful, their money rules. If they need to make $20k from the deal, that would be different than if they need to make 20%. If they are buying to hold and rent, then they will not have immediate marketing costs in 90 days to resell the property, and you need not calculate for those additional costs. If they are rehabbing the property to rent it rather than sell it, then the rehab costs will be significantly less.
It is not my intent here to complicate the process, but rather to simplify it. How hard is it to have a candid conversation with a cash buyer who wants to buy, and ask them the questions from the leads form to really find out what they will say yes to.
In order to successfully wholesale a property to a cash buyer, you must be clear on what they will buy from you. If they were sending you to the grocery store to buy oranges, the last thing you want to do is bring back apples. No formula that we can supply will send you out more prepared to make offers than the the formula that came directly from your cash buyers, plus a profit margin for you.

My biggest problem right now is that in order for me to make offers through a Realtor you need earnest money which I don't have. So properties keep passing me by until I am able to provide the earnest money

Real frustrating

The best counsel that I can provide is to not dwell on the problems or obstacles, but to always focus on the solution. My first real estate mentor had what he called Kesslers Law: "There is ALWAYS a way!" And there is.
If listed properties with Realtors require earnest money deposits beyond what you have available, then focus on all the ways that you can find properties that do not involve a Realtor. For Sale By Owner Properties (FSBO), rental properties (I find properties for wholesale deals or lease options by calling on rentals), properties that are not on the market but need to be sold (properties in probate, properties in disrepair or boarded up, properties coming out of Chapter 13 bankruptcy protection, properties owned by seniors moving into assisted living facilities), all these are likely candidates as properties that are not listed to be sold by real estate agents. You may need a little more understanding on how to find or market to these, but there are lots of opportunities once we start thinking outside the box on how to find properties.
Also, keep in mind that earnest money deposits are technically not due until after the offer has been accepted, so the likelihood that you will have multiple earnest money deposits out simultaneously is slim, especially at the beginning of your investing career.
As I stated earlier, there is always a way, we simply have to focus on a solution, adjust our strategy a little, and learn whatever new knowledge we need to implement the changes. Let us know if you need additional information on any of these approaches to finding properties.

So far I've had realtors ready to make my offers then back out saying they don't "do" low offers. Haven't given up but frustrated with not being able to put in those offers.

My bandit signs and yellow letter campaign bring me a few potential sellers here and there but not near what I need in order to be successful. Any suggestions?

Wendy

but I know that I am not making consistent offers. I found a buyer who was looking for a certain area and a very very low price, so it was hard to find, but I did make offers and I had a number of counters offers. Now it is down to one offer of the ten, but looks like the house has mold and mildew problems, so we are checking to see if this house is really doable.

I am progressing with the offers, and learning how it all works, but I still need to do consistent offers. Still I am working on it! Slow but steady progress as I also don't want to just throw out offers to say I did 5 per week, but not be able to perform, or get the offers countered, and accepted.

Thank you for your response and the guidance provided through your words. I do need as much help as I can get. My other problem and is the biggest of all is buyers.

I have red through this site of the different ways to create a buyers list and I am trying to build that as well. You can probably find properties, but if you don't have any buyers that can dismantle a good deal.

I have great cash buyers. My challenge is finding the deals.

That is a good link. Do they buy anywhere?

Another thing I learned early in my investing career is that if you follow the mainstream, you miss the pools and eddies. I have always considered myself as the best golfer in the world because I see more of the course than most people do--rough areas, sand traps, hazards, trees, gopher holes, I see them all--and I go home happy for the experience.
As real estate investors, if you aren't finding enough property opportunities, you need to turn over more rocks. Here are 7 creative ways of finding property opportunities.
1) Call on rental properties, see if they have ever considered selling down the road. Tired landlords are often a source for properties for wholesaling to other landlords, or for lease options or other seller finance deals.
2) Contact administrators and marketing directors of assisted living and nursing home facilities--their biggest obstacle in getting commitments for new residents is that mom or dad's home needs to be sold. Offer to pay a referral fee and speed up the process of getting these properties sold so that the families can make a commitment to move mom or dad into the facility.
3) Research properties in probate, communicate with the trustee and executor.
4) Create a bird dog network of people whose jobs take them through neighborhoods--postal workers, fedex, ups, pest control, landscapers, carpet cleaners, pizza and Chinese food delivery, etc. Give them a list of what you are looking for and offer big referral fees if you do business on that property. Have them look for disrepair, rental signs, fsbo signs, foreclosure notices, signs of vacancy, even realtor signs for sale. I suggest giving them a list and having them sign it to verify that they understand what they are looking for. It feels like a contract and they are more likely to follow through.
5) Make an arrangement with a real estate agent to research expired listings. They are not entitled to receive a commission, so you will need to agree on some method of compensation if a deal is made.
6) Drive neighborhoods yourself looking for the same things that you ask your bird dogs to find.
7) Research people falling out of Chapter 13 Bankruptcy protection. Approximately 92% of all Chapter 13 Bankruptcies fall out of protective status during their repayment schedule, and are on a very short timeline to lose their property, with no one marketing to them and less options available. This is a seriously big opportunity.
Straddle two markets, work your own backyard, and find a remote market in another part of the country with different market conditions. Shift your energies to either market based on the relative success you are having in each area.
There are many ways of finding available properties, I hope these eight additional ones add at least a couple of new possibilities to your property searches.

Thank you for your advise, is very inspiring and makes me want to continue trying to make offers.

But sometimes I give up because I see no results.

I have a philosophy in life that there are only two reasons for doing things:
1) Enjoyment (Getting the results that we want)
2) Learning (Not getting the results that we want)

The logical conclusion from this is that we are not enjoying something/getting the results that we want, there is only one question worth asking:

What am I learning?

Giving up, then really isn't an option, we can only reassess and adjust our direction. If you are not getting the results that you want, use other professionals, friends, family members, etc. to help you determine what you need to learn and change in order to get the results that you want. That's why I included the 8 creative ways of finding properties above. We all know that in every corner of the market there are people buying, selling, renting, and leasing properties, there are people who are having financial problems, people who cannot physically take care of their properties, people who are moving to other areas, people who are being foreclosed upon, people who are getting divorces, etc. In other words, life is going on as usual, and that creates real estate related needs. If we cannot find a way to insert ourselves into that flow of need and money, it is only because we have not explored some of the options, clearly understood the needs, or built the necessary relationships.
Take a step back, ask yourself what you need to learn, give yourself a little quiet time to think about that, and you will receive an answer that will help you know who you need to call or what you need to do.