Do More Deals: How Writing Offers is Like Dating
My friends call him “The Devil” but his real name is Sam. He earned the nickname because of his outrageous behavior.
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Now don’t get me wrong. Sam isn’t a mean person. He’s actually a very nice guy. It’s just that when he’s around bad things happen. At my bachelor party in Las Vegas Sam somehow managed to lose all his money, his wallet – and even his shirt. That’s right. He actually lost the shirt off his back. For some reason Sam thought it would be a good idea to take it off in the middle of the casino. He tossed it on the floor and couldn’t find it again. It wasn’t long before security politely asked us to leave.
But as bad as it can be to hang around Sam, especially in Vegas, he’s very good with the ladies.
I remember being with him once at a night club in San Diego. We’d barely been there an hour and he was dancing with a beautiful girl. I asked Sam his secret. Did he have a funny pick up line? No, it’s the law of averages he said. He explained that if he asked every girl in the club to dance eventually one would say yes. Sam was clearly not afraid of rejection.
The law of averages approach is a great way to meet and date women (or men). But it also works well when writing offers on houses. If you write enough of them eventually a motivated seller will agree to your terms.
Over the past three months I’ve written approximately 60 offers on short sale and bank-owned homes. I’ve had 15 of them accepted and closed 5. Of the closed deals, 2 were REO’s. The listing agents for these properties were amazed that the bank was willing to accept my “low-ball” offer.
It all boils down to the law of averages. And a contract that has these terms:
- Earnest money $5,000.
- Inspection period 5 days.
- Closing 10 days from offer acceptance, or sooner.
With that much earnest money on the line the bank knows I have the cash to get the deal done. I’m also less likely to walk away after the inspection period expires. A shorter inspection window says I can quickly assess the condition of the property. And we all know how much a motivated seller appreciates a fast closing.
Remember the law of averages. Write lots of offers with good terms. Don’t be afraid of rejection. Be like Sam. In the end the only difference is he gets to dance with the pretty girl – you get the ugly house.