Multiple offers on same property

7 Replies

Do you have a template on how you give a homeowner multiple scenarios to purchase their house? Ex. 1- full cash, 2- partial down payment with monthly payment, 3- another down payment with monthly payments.

Thx

A letter of intent.  Just write them a letter stating that you would be interested in buying their property if any of these scenarios might work with them, then list them in detail. If they're interested, they'll let you know by communicating. If not, it gives you experience for the next deal.

What purpose ii giving a homeowner multiple choices? You should negotiate the sale according to specific  terms then write up a contract

All real estate contracts have a cash or financing clause with the amount of down payment etc. If you go to your local agent there can show you a sales contract or if you bought a home just look at your purchase agreement 

The trick of the multiple offer strategy is that you make generally 3 offer and the seller doesnt seem to realize that saying no is an option, they just pick one. 

The way I do this is that my cash offer is the lowest offer and the one I dont want him to choose.  My next offer is lower payments with a balloon, and my thrid offer is the longest terms payments and a slightly higher monthly than my balloon.  the third pays my seller the most and offers me the most flexability in my exit strategy.  I look for this offer to still be below market rents so I can take it as a subject-too, or I can pass it to a lease purchase buyer and make a relase fee if there is no equity to be had.

I dont do anything formal, I just present the offers verbally.  I feel no need to write up 3 contracts.  

I hope that helps

Josh

Medium t shirt logoJosh Caldwell, Pittsburgh REIA | [email protected] | http://pittsburghreia.com

@Josh Caldwell

 @Eric Armstrong

 Thanks for pointing that out Josh  sorry I missed the point of your question Eric. That is a great technique that we used all the time in car sales and can be very effective .

@Josh Caldwell that's the idea I was looking for , do you know where I can find some examples(actual numbers)?  Thx

@Eric Armstrong

Tell me about the exact house you are looking at, its market value, and ARV, Etc and I will make up one for you on a specific house.

Josh

Medium t shirt logoJosh Caldwell, Pittsburgh REIA | [email protected] | http://pittsburghreia.com

Josh Caldwell
Thx for your feedback Josh, I'm not sure how I missed your final response to my question. Here is a current house I'm looking at. It is an estate and family had it appraised for 260k as is. The comps run from 300-330 and needs 60k in work. My typical formula puts me at and offer of 157k. I want to give an option that lets them hold the note and get paid after I sell. I'm using hard money which will cost me about 18k and bidding against other investors that get cheaper money. Thx

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