We use the Make Offer Checklist when we are presenting our offers to the seller.
Typically we would prepare a number of offers to make to the seller with the Structuring Offers Checklist to guide us in the process.
Once we have the offers structured, we would then schedule a time to meet the seller to present the offer. Face to face presentation is preferred, but when dealing with sellers that are not in your local market we have an additional Making Offers via the Telephone checklist that we will use to remind us of the best practices for presenting offers over the phone.
Of course part of presenting offers is being able to handle objections. The Real Estate Investor Wiki has some great additional resources for How to Handle Objections and specifically How to Handle Seller Objections.
The meat of this checklist though is the Making Offers Checklist which consists primarily of our 49 page Seller Presentation that we go through with each seller in person.
The Seller Presentation is critical to us presenting offers since we use it build trust, credibility and use it a sales tool for talking about the various ways that we buy properties before presenting the specific offers to the seller. A downloadable copy of our Seller Presentation is available for our Real Estate Investor Bronze Members.
Until my next post,
James
I’ve been working on updating some of the checklists that we use for buying properties (the link is for exclusive resources for our Real Estate Investor Bronze Members). This process reminds me just why it is so important to use checklists when looking at and buying properties.
If I told you that committing know to using a checklist could save you, at a minimum, $10,000 would you do it? I hope so and it can save you at least that much and probably much more.
Think about it: don’t most of the life critical or extremely expensive processes you know of use checklists to make sure they are doing everything right, consistently every time? Think about your medical procedures or airplane systems. By following a well documented system and meticulously following the steps you significantly cut down on mistakes.
Plus, by taking the time to think through the entire process before hand (and improving it as you use it and make better distinctions) you can protect yourself from known dangers and cut out emotion in the buying process. Remember, you want to buy logically and sell with emotion and checklists allow you to do that.
Until my next post,
James
So, you’ve put out some Bandit Signs that focus on finding motivated sellers with Ugly Houses (links are resources for our logged in Real Estate Investor Bronze Members). A seller has called and you’re at the point in your real estate investing buying system where you are structuring your offers that you will make the seller to buy the property.
So, how do you actually determine what you will offer as your all cash offer to buy this particular property? Well, that is where the Ugly House Maximum Allowable Offer Formula comes in.
This very simple formula allows you to take some very basic information about the property and determine, very quickly, what the absolute most you should be offering to purchase this house if you were paying all cash. In fact, if you plan to use a Hard Money Lender to lend you money on the property, this formula actually already takes that into account. Just make sure your formula includes the exact limits that your specific Hard Money Lender has given you for their lending requirements.
Also, the Ugly House Maximum Allowable Offer Formula can easily be used if you plan on putting the house under contract and then wholesaling it to another investor as well. Just be sure to add in your wholesale fee when you calculate the offer and put the house under contract.
So, check out the formula and use it whenever you make an offer to buy an ugly house.
Until my next post,
James
In my last few articles, I discussed how buying a house subject to the existing financing is similar yet different from leasing a house with an option to buy. I talked about how one is not necessarily better than another, but that each has its advantages and disadvantages depending on what you are trying to accomplish.
Now, I will share with you a strategy for making an offer to buy a house subject to the existing financing where the similarities between “subject to” and “lease options” are used to make a stronger, more understandable offer to a seller.
First, you might suggest in a trail close something like this: “I’m not sure if I can buy your house for that price, but would it help you at all if you did not have to worry about making the payments any more?” Motivated sellers usually reply, “yes, that would really help.” If you don’t get that type of response you might not be dealing with a motivated seller.
If they ask you what you mean you might say, “well, I could make payments to you for the amount of your loan while I am selling the property if I decide to purchase the property from you. Might that work for you?”
So far, you could be talking about either a lease option or buying the house subject to in the example. How you actually structure it can be discussed on the paperwork. In a future article, I will be discussing some strategies on what to do if you present an offer to buy the house “subject to” and, after discussing it, they do not feel comfortable with it.
Until my next post,
James
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