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Updated over 6 years ago on . Most recent reply

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Nicole Heasley Beitenman
#5 Medium-Term Rentals Contributor
  • Investor
  • Youngstown, OH
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"Formula" for 3-part offers?

Nicole Heasley Beitenman
#5 Medium-Term Rentals Contributor
  • Investor
  • Youngstown, OH
Posted

A friend from my REIA was talking to me about how to make offers, and he (and other sources I've looked into) suggest making 2- or 3-part offers to increase the odds of my offers being accepted.

As an example, he suggested: 

1) All cash; this would be my lowest offer 

2) A seller-financed offer $30k higher at 8% with 5.5% down that balloons at 5 years 

3) A seller-financed offer $50k higher with no money down at 6-7% with no balloon and the option to refi at any time I want.

I've also seen this suggested: 

1) All cash 

2) Title changes hands 

3) Lease option (title stays in seller's name)

I'm very curious to know if the more experienced investors out there have a set strategy or formula they use to develop their 2- or 3-part offers. I realize that deals will vary based on the market, the current owner's situation, the type of deal, etc., but I'd like to streamline the process of putting together an offer once I've analyzed a property.

TIA!

  • Nicole Heasley Beitenman
  • Most Popular Reply

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    Kerry Baird
    • Rental Property Investor
    • Melbourne, FL
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    Kerry Baird
    • Rental Property Investor
    • Melbourne, FL
    Replied

    I've used that method successfully.  It works better, in my opinion, to present the benefits to the seller directly than through a Realtor.  I met with sellers who called me off of my marketing piece and talked with them at their home.

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