How to write a good query/offer on a house?

Question

I was out driving today, and I was just keeping my eyes open to be driving for dollars at the same time.

I saw a house that look abandoned, so when I got home I looked it up. Sure enough, the owner is not from here. So I would like to invest this opportunity further, but I've never done something like this. I have the owners address, phone number, and email from digging I did online.

Here are my main questions:
What is the appropriate way to contact them?
Should I make an loose contingent offer, then go see the property and make a better offer? Or should I just say I'm interested, go see it - then make an offer?
What information should I be checking out for Due Diligence in the meantime?
Are there any good articles on writing a good letter of interest / phonecall script? Or does anyone know of an example or sample I can look at?
What else am I forgetting that I should keep in mind?

Greg Parker · Answer

@Andy Thoman talk to the neighbors.  I don't have much luck with that, the neighbors call the police when they see me in their yard.  But....my wife is a professional talker.  After 5 minutes she will have the entire history of the vacant house and names and birthdays of all of the grandkids, the dogs name, what kind of coffee they drink, etc.  A couple years ago a neighbor invited her in for supper.  Left me sitting in the car.

Rebecca Knox · Answer

Yes to contacting investors!! For various reasons, investors want to sell and/or change up their portfolios.

I agree with Brie, call them and find out if they are even interested in selling before putting any more thought or time in to it. If they do want to sell or say the infamous line 'Anything is for sale at the right price', then gather some basic information about the property and try to get their price and their motivation for selling.  Everyone does things differently based on their comfort level. My objective is to try to get their target price and determine if we are in the same price range prior to seeing the property.

Also, go on youtube and search 'motivated seller calls' and there are great videos that you can learn from.  Fine tuning your emotional intelligence is helpful in negotiations.

There is an app called DealMachine that you can use if you drive for dollars. It locates the owner's phone and address and you can mail to them directly from the app.

Greg Parker · Answer

@Jim Peret contact them.  It could be they are ready to sale, need cash for another deal, etc.  I am looking at two multi-family properties now that are investor owned.  One of the partners has moved to another town and is wanting to liquidate.

Jim Peret · Answer

While this post is hot I'm going to ask a question on the same subject.  Hopefully that's OK?  When I've been driving around working on my properties I've noticed an apartment I thought might be a good fit for me.  So I look up the owner and it's a real estate investment company. I know the tax assessment and would like to pay less. It this worth my time ? I'm thinking they probably have no motivation and surely wouldn't give any discount.

Brie Schmidt · Answer

You will have to ask him when you call.  If he is out of state and in Milwaukee he is required to have a local operator to be in charge - so someone has to have keys

Andy Thoman · Answer

How do distant owners usually show the property. This owner lives far away, and it doesn't look like its occupied, so I don't know if there is a property manager. However, the owner has kept up the taxes. It seems like it is something that is just losing him money if its not occupied.

Brie Schmidt · Answer

When I offer sight unseen I give a general ballpark +/- 25% based on condition but then the seller wants the higher end if the place needs a lot of work.  So I just ask to see it or ask if he has a number in mind.

Andy Thoman · Answer

So you would wait to mention any number for an offer until after I've seen the property and talked to the owner?

Brie Schmidt · Answer

@Andy Thoman - Call him and ask if he is even interested in selling.  If he doesn't respond after a few days send an email.  Then go see the house and do your DD like you would any other offer.

How to write a good query/offer on a house?

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