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Making Offers

Posted on May 28, 2013

One of the things you will learn in your real estate investing training is that you need to be making extremely low offers. If you are not making low offers then you can be setting yourself up to lose a lot of money. These offers are based on knowledge and experience of what costs actually need to be calculated to make a deal. You've got rehabbing costs, private or hard money costs, holding costs, closing costs, inspection costs, taxes, insurance, etc. Basically, you are not being a jerk by making a low offer; you are being a sensible, knowledgeable business owner.

Still, many new investors are uneasy about making low offers. In reality, many of these owners will be thrilled that they are getting any offer. Plus, when you have room to negotiate, the owner will feel they have more control in the sale of their property. You will still come across many owners who shut you down at the site, but a follow-up with them could change their mind.

However, price isn't everything when it comes to making offers. In this competitive market, you've got to offer more than a low price. Sellers want to accept an offer from someone who will definitely close. If you have testimonials from other sellers about how you closed the deal with no headaches like a pro, the seller will most likely choose you over someone with no experience. You also want to include in your offer how quickly you can close. These sellers are motivated and want the property gone now. The more you can show them that you can close with greater ease, the better your offer.

If you can increase your earnest money, the more serious you look about purchasing this home. If you can shorten or eliminate your inspection period, you will stand out to the seller as someone who will not be stopped from closing on this house. Also, the fewer contingencies you need in your contract the better. A proof of funds letter will definitely make you look more credible and able to purchase this home.

In conclusion, the less hurdles that the seller has to jump through to get to closing, the greater your chances of getting your offer accepted. Danny Johnson tells his story about making offers in this next article.

Lazy Doesn't Buy Houses: Making Offers to Seemingly Unmotivated Sellers by Danny Johnson

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