Property Owner: Send me an offer.

3 Replies

Hi everyone,

I'm cold calling owners in my area, San Francisco and the Peninsula, and I'm targeting vacant lots or properties with enough square footage to build small multifamily, luxury SFR, or luxury condos on them. Sometimes I come across an older property owner and they tell me that they haven't thought about selling and to just send them an offer.

I do ask a second question to find out what number they are looking for, but they just say I don't know.  

I'm trying to be as efficient as possible and not waste my time doing financial models, zoning analysis, and etc without knowing the landowner's number. Do you guys come across the same thing? Is this normal?

Good morning, this is a great question...  as you can spend a lot of time and effort spinning your wheels for nothing.  We send out thousands of cards and make a ton of calls each month looking for deals.  

We get many responses... but a lot of them are just curious. They don´t have any intention of selling. 

We ask them point blank:

"Are you interested in selling your property?¨   If they say no, believe them. Move on to the next one. 

If they say maybe, then press them for a number:

¨Have you been keeping an eye on your neighborhood´s value? Do you have a number in mind? If I gave you an offer near market value will you sell your house? Do you need to sell your house?¨

When they tell you to just send them an offer, kindly remind them that you´ve never seen the inside of their house so you can´t give them an offer without more info. 

Be specific, ask point blank. If they can´t answer right then, don´t waste your time w/ financial models or zoning.  Do however keep their info.  It might be a matter of building a rapport with them. 

An older property owner might not spend their spare time on zillow/redfin... Call them whenever a house in their neighborhood closes or goes up for sale.  You might become the resource that helps them come up with a number. 

Best of luck. 

Originally posted by @Aly Vizcarra :

Good morning, this is a great question...  as you can spend a lot of time and effort spinning your wheels for nothing.  We send out thousands of cards and make a ton of calls each month looking for deals.  ...

Can't agree more. If they are not motivated to sell then move on and get back to them in a month or six. 

Another approach is to learn the market a little better and YOU pick a price YOU would pay to easily flip it. The worst that can happen is that they say YES and now you have to buy it, flip it, and make some money. I would also find out if they are open to seller financing too, that may change the value of the property. As you database all these properties and owners you'll learn the market and learn what buyers are willing to pay for.

Make more calls and database, you'll soon learn what a piece of dirt is worth. And you may even come across a killer deal that you can flip and make your year with. It happens every once in a while.

Originally posted by @Gi'angelo Bautista :

Hi everyone,

I'm cold calling owners in my area, San Francisco and the Peninsula, and I'm targeting vacant lots or properties with enough square footage to build small multifamily, luxury SFR, or luxury condos on them. Sometimes I come across an older property owner and they tell me that they haven't thought about selling and to just send them an offer.

I do ask a second question to find out what number they are looking for, but they just say I don't know.  

I'm trying to be as efficient as possible and not waste my time doing financial models, zoning analysis, and etc without knowing the landowner's number. Do you guys come across the same thing? Is this normal?

Depends, Wasting your time and buyers time writing offers does not make sense unless you feel there is real motivation there. Keep them on the phone, ask some simple questions. Tell them you will run a valuation and send it to them if they are not sure on pricing and if they engage the valuation, close them for listing. If they insist on off market route, engage a serious number they want in order to sell.

Send your commission with the offer to the owner and follow up. Always try and close for a meeting, even if it is just a meet n greet where you can go over your market findings with them. Make sure you ask what they plan to do after the sale, if they have not thought about it or don't know, they are not ready to sell yet. Make sure you have the correct options for them if they ask you, what they should do post sale, this relies on your knowledge of taxes, what they can buy back into and 1031 if applicable (and other tax incentives not advertised to the public)