I'm fairly new to real estate investing and have done a lot of marketing to try to wholesale deals. How many offers do i need to make before someone says yes? I'm getting creative with not just negotiating price but terms as well for buy and hold investors.
Been doing this for about 9 months now with no success. I've made 6 offers out that 9 months. What's the magic formula or number I should be striving for?
More! No secret, in sales it is the 9th,10th,11th..... that separates the best from the others.
Your answer will come when you get "yes" for an answer. It's just that simple. There isn't a magic formula of attrition. There are two rules:
1 - Only make offers based on the numbers you need, not the seller.
2 - Don't rationalize rule #1...you'll lose.
Are you dealing with motivated sellers? If not you are wasting your time and you need to put a system in place to attract them.
How close have you gotten?
What ultimately happened with the "close misses"?
If you aren't getting counters(or they are way off), then either your offers are way to low or you need to find sellers that are more motivated.
Yeah no secret formula, but you need to put out more offers.
After 9 months that number should have a 0 (if not 2 of them) in front of it.
At 6 offers it would have just been dumb luck to have actually gotten something accepted.
thanks for all the love and advice. i've gotten into negotiation war with the most recent seller i've encountered but we couldn't agree on terms and i had to walk away. i talked to a handful of actually motivated sellers but there was nothing i could do for most of them.
it just seems a little discouraging when you been trying but nothings worked so far. I suppose there's nothing else to do but to keep making offers and finding sellers
@Mario T. The most successful people learn to let the No's bounce off of them. Remain focused on the Yes's and forget about the No's other than lessons learned. A YES is right around the corner, my friend, if you keep going with everything you have!
@Mark Freeman thank you sir! i needed the inspiration
You only need to make 1 offer to get a house. Just offer way above market value and you will get it.
On a more helpful note. You could try to follow up with those who have turned you down and see why they did not acept your offer? Is there another wholsaler in your area overbidding? Not giving the seller enough options?
Whatever it takes! Make an offer everyday. Once I realized that I needed to make a hell of a lot more offers, I had a lot more success. Successful wholesalers (and I'm not claiming to be one) don't take no for an answer. Work on your negotiation skills and learn how to field any objection the seller may throw at you.
Be persistent with your offers and keep sharpening your negotiation skills. When you learn how to solve a problem for a distressed seller, you will close a lot more deals. Go out there and be confident. Good luck!
I will be the devils advocate! Are you being realistic for your area? I can go to trumps towner and offer $10 an no matter how motivated you will never get a deal.
We have done very well growing our property. While we have not always had are deal accepted we have had more accepted than not. Have you lost any deals over $1,000 or something silly.
My markets have gone up 20% in the last year. While I might have not hit a home run on one property as a portfolio we have done very well. Just thoughts! I have just learn the hard way on you need to make sure you are being reasonable and realistic.
One thing that has always helped me stay motivated and push on despite disappointment is this.
Thomas Edison designed and built 10,000 light bulbs that didn't work, and eventually made 1 that did. The 1 that did made all the difference in the world.
"I have not failed. I've just found 10,000 ways that won't work." Thomas Edison
@William Baumann I love that quote by Edison. I use it all the time when I'm in front of a group, or mentoring.
@Joshua D. thanks for the motivation. #slowfeetdonteat
@Elizabeth Colegrove did make an important point. I wanted to tie her thought with some of the others. You said that you had reached motivated sellers, but couldn't do anything with them. The longer you work this business, the more tools you have in your tool bag, the more experience you aquire, the more you are going to be able to work these leads. If you have only one buying strategy and one exit strategy, you are very limited on what constitutes a "deal".
Example: if a seller calls you and says he has a house with a $125,000 mortgage he owes approximately $100,000 on a 5% 30 year mortgage that is 10 years old. Monthly PITI around $750.00. His wife has recently passed and he wants to move out of state to be closer to kids and grand kids. He will be moving in with his son. He needs at least $10,000 for his "equity" (his own stubborn sticking point). The house is in livable condition, but would need updating to sell at peak price. You know the neighborhood and know that houses here are worth between $100-135,000. This house would rent for around $1,000-1,250 month.If you are a wholesaler who needs to buy at a deep enough discount to get a wholesale fee and pass on a house with flip numbers, this is a dead end lead. But there are many experience people here on BP that could create a deal and structure something sweet both for the seller and for themselves.
@Derek W. Thanks for the great tip. So for the example you described, i would suggest a lease option assignment? If i can get it for a smaller monthly payment i could capture a significant cash flow and assign the contract to a buy and hold investor.
What would an experienced investor do in this situation?
What market are you targeting? It looks like in Glen Allen most properties are selling right around(and often slightly above) the Zillow values, which indicates there aren't a lot of distressed sale. While that is good for homeowners, that can make it challenging for wholesalers and investors.
It does look like with a good deal, you could get something that matches the "1%" rule for a buy and hold but you really have to run all the numbers and make sure you account for repairs - especially delayed maintenance.
Do you have investors you are working with? If so where are they getting the deals that they do?
@Jesse T. i'm targeting the city of richmond. the investors im working with are looking in richmond. i feel as if the richmond market is saturated and need to focus else where but i don't know where. your thoughts?
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