First of all, its hard to find a real good deal on MLS nowadays and when you find one, there are always multiple offers. For a typical investment property under $100K, I usually use the following strategies -
-Go very aggressive on Earnest Money, up to 25% of the listed price. I recently managed to acquire a property for my client for $525K which is valued around $550K+. We put $50K as EM and I believe it helped us win the bid. During the informal conversation after closing, the Listing Agent indirectly told me at that I got that deal not because it was 'the highest offer' but it was 'the best offer'. I've done the same for investment properties under $100K (put $5K-$20K as EM).
- Cash Offer: I believe it is kind of pre-requirement for a typical investment/foreclosed property and most of the investors do this so I don't think this helps much, especially under $100K properties.
- Go aggressive on closing date: Not sure if this really helps, especially for foreclosed/REOs
I will appreciate thoughts from experienced investors and wholesalers about how they use these and/or other strategies to win the bid where seller has multiple offers.
You are missing a huge factor... emotion. Money talks but when a deal is equal, the buyer that builds an emotional connection will always win.
Make sure you include a story about yourself (or your client) with the offer. I always attach a picture and why this purchase is important emotionally. Try adding that personal touch and see your results.
@Robert, Thanks!! that's really a great point. I never tried it but makes perfect sense to me and will try it for sure.
so, with regard to story telling part, do you include it as your email message with the offer attached or you include that along with the offer??
With regard to picture, I am not sure if it has any legal implications/Fair Housing???? Thoughts?
The fair housing law falls on the seller side... so you have nothing to worry about when you are the buyer. I write it in the email and paste the picture then attach the offer and financials in one pdf document
Try a video letter of intent as well! goes even further
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