Gwinnett county Georgia · Member since 2018 · 13 posts · 1 vote
Hello Everyone,
So Im going to start looking to buy my first real estate investment when I return home in a couple months. I've heard numerous times about how important it is to put in multiple offers on different properties, because thats what ultimately gets a offer expected. My question is how do you go about doing this? Do you put one offer in at a time and wait to see if it gets excepted before you put in the next or is it ok to put in multiple offers at the same time? The reason I ask is because lets say you get multiple offers excepted and can only feel the obligation for one, won't you be held liable for the other offers if the seller has excepted it? Any feedback would be appreciated! Thanks!
Buffalo, NY · Member since 2014 · 371 posts · 146 votes
7y
I don't like that strategy at all. It is a very selfish strategy and will get you a bad reputation of someone who doesn't follow through on their word. If you're in it for the longhaul, avoid making offers that you potentially cannot follow through on. Instead, put a clock on your offer so you can move on to the next one if you don't get the deal.
Buffalo, NY · Member since 2014 · 371 posts · 146 votes
7y
I don't like that strategy at all. It is a very selfish strategy and will get you a bad reputation of someone who doesn't follow through on their word. If you're in it for the longhaul, avoid making offers that you potentially cannot follow through on. Instead, put a clock on your offer so you can move on to the next one if you don't get the deal.
Gwinnett county Georgia · Member since 2018 · 13 posts · 1 vote
7y
@Mark Bookhagen You're saying the way ppl do it when they're looking for one deal is just place one offer at a time wait for it to get excepted or denied and then proceed to offer on another property? Ive just always been confused when I hear people say that as a investor you need to put in a lot of offers to find something..
Buffalo, NY · Member since 2014 · 371 posts · 146 votes
7y
@Brian Clinkscale Right, that's what I'm saying. You will need to place lots of offers, but not concurrently. You can put a timeline on your offer explaining you have other possibilities lined up and need to know ASAP if you have a deal or not.
Rental Property Investor · Union, KY · Member since 2018 · 33 posts · 22 votes
7y
Brian,
I am just speaking from my personal investment journey and I am definitely no expert with only having one year of experience under my belt. I have made multiple offers but the number of multiple offers I make depends on how much earnest money I am willing to tie up. In the scenario where you get multiple offers accepted and you only want to focus on one or a couple, keep in mind that you have your contingency clauses in the PSA such as the Inspection Clause where you can get out of a deal if it doesn't make sense. Like I said, I'm not an expert and my answer is based on my limited experience. Someone may have a much better answer than I do.
Rental Property Investor · Alamogordo, NM · Member since 2018 · 4 posts · 1 vote
7y
I agree with @Mark Bookhagen, I had a couple of deals that I put an offer and I get out bid by a higher offer, then later the higher offer falls thought and the realtor calls me to see if I want to resubmit my offer knowing that I will follow though mine. Creating that reputation is extremely valuable and will get you more deals in the long run. I'm not the most experience investor but in the short time I been doing it I see the value of having a good reputation.
Rental Property Investor · AZ · Member since 2018 · 212 posts · 183 votes
7y
@Brian Clinkscale
Here in AZ there is a form we can use for buyers that make multiple offers. I assume it can be done anywhere with the proper wording.
Or as said use a short response time.