Not long ago in one of my posts I stated how I like to work with clients. I told this owner I could get them around 150K-155K for their house or would buy it outright for 120K. It needs some minor rehab but I could probably flip it fast>>> for 145-150K. If I want to put in around 6K it would probably bring in the 160K range. Seller sent back a signed contract today for my 120K cash offer. What did I do right...and why did he choose the lower amount?
1. I was 100% up front and honest (I believe this is the only way to treat people).
2. I didn't put any pressure on the seller. I made the offer weeks ago via a contract.
3. I gave the seller options: fast fast sale..quick cash....or more money to wait.
Sometimes it isn't "just about the money". I have found that making offers, giving people "space", and respecting their time to make a decision is important. I would have been very happy to help this seller either way...with listing the property or an outright purchase.
Same business plan I have, just got my license so I can make cash offers, creative offers, or list, and let them choose. I initially did a Direct Mail campaign and realized how many potential deals I was passing up by only being able to throw out low offers and hope one would stick occasionally. I also think it's more respectable and easier to give them an offer as you did and let them decide what works best for them, makes you appear as less of a predator/bottom feeder. Nice work.
The seller signed today. This is the house: 4/2/2 Adams built home 2143 living area. It is proof there are still deals out there. I purchase it with a combination of cash and private money. It will have great cash flow and with aggressive financing will be free and clear in five years.
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