Interior Designer/Home Stager · Dallas, GA · Member since 2013 · 202 posts · 9 votes
ok, so.. I've reached the point in my business where I am making wholesale offers! .. and, it's probably the most nerve racking thing I have ever had to do! At this point, I'm having to close my eyes and hit the send button! LOL! SO.. how do YOU make your offers? soften the blow? ..when you KNOW it's not what the seller want's to hear, how do you manage the big question? :D
On very few occasions has my offer been what the seller wants to hear. There is a great saying "if you're not embarrassed to make your offer, you're offering too much!"
When I think about my offer, I remove the seller from the equation and only look at the numbers. The numbers have to work. If I like what the numbers tell me, I make the offer, regardless of how absurd the seller might think it is. To me, the house is only worth what I can pay for it, not what an occupant with a 97.5% LTV FHA loan is willing to pay.
Be embarrassed. Be ridiculous. Go forth and make money!
Who cares what the seller wants to hear? You have to make the offer based on what a property is worth to you.
That said, if you're making low ball offers vs. what a seller is asking, especially for listed properties, you're going to have a very low acceptance rate.
You know what the worst response to an offer? ... "we accept". You've just paid more than necessary.
Like @Jon Holdman said, you've got to make the offers that work for you. I've hear it said over and over that something like 95% of your offers are going to be rejected and that's alright, you only need a few to get accepted. As Robert Kiyosaki says, "Fail fast and move on". Happy investing!
On very few occasions has my offer been what the seller wants to hear. There is a great saying "if you're not embarrassed to make your offer, you're offering too much!"
When I think about my offer, I remove the seller from the equation and only look at the numbers. The numbers have to work. If I like what the numbers tell me, I make the offer, regardless of how absurd the seller might think it is. To me, the house is only worth what I can pay for it, not what an occupant with a 97.5% LTV FHA loan is willing to pay.
Be embarrassed. Be ridiculous. Go forth and make money!
Congrats on getting your business to the point of making offers. I wish you the best with your real estate journey. Not trying to be critical, but do you have to use the name of JESUS in that reference? I know your excited about growing your business but couldn't you have chosen a different post title? Just something to think about next time you post. Again I wish you all the best!
aaahhhhh!!! @Aaron Mazzrillo!!! I don't do this type of embarrassment well!!!! haha! I really have to psych myself into it, but I'm sure I won't have to for long.. But if that's the saying, then I'm definitely not offering too much! LOL! Love the quotes! Thank you! I'll have to post those nearby as well! :D
oh @Winston Spence, no, I'm sorry.. there is no other name I could have used! :) I am VERY UN-apologetic about my faith, and since He is the ONLY name that I call on.. I do it daily, seriously and often! :) I'm sorry if you take offense to that, but it's my thing! If you practice using His name differently in your life, I'll let you do that, but as for me and MY house.. this is how WE use His name! :) Thanks! and Best of Luck to you as well! :)
Haha! Wow! @Tim G. THAT is awesome! You are absolutely right! .. and so far, what I've heard is not even all that bad, typically, just a "no!" :D I have had one "Everyone's an investor! I don't want to hear that crap!".. lol! But, we actually ended up being really good colleagues once I explained to him what I do! lol!
No hard feelings. If that's how you connect with JESUS, who am I to judge. It irked me the wrong way logging on and the seeing the title the way it was, I misunderstood and for this I apologize. Happy to see that you are succeeding in real estate. All the best!
I just offered to buy a property if the seller would give me 90% financing, 6% interest, 30 year fixed. Then said I may want to sell the property and not pay you back. Would you consider letting me move the note to another property I own if I upgrade your collateral? She said, "whatever you need to do."
That's how good financing is obtained on a long term keeper property. Make crazy offers and sometimes they say yes. Those are the only ones that matter.