How to Present a Strong Offer

Right now most markets are pretty over-inflated, there's a lot of crazy asking prices and also people willing to pay crazy prices so we've predominantly been searching out off-market properties and doing our best to just get to a property before him because that we know when a property comes to it comes to market and it's coming through a broker it's probably in an asking price that just really doesn't work for the numbers so if we are going to submit an offer generally our offer may be at 70 percent eighty percent maybe fifty percent of what the actual asking price is.

That's a really tough thing to do so what we've done and what we've had success with is that a few things when we present an offer we will present a contract instead of an LOI so they know that we're serious here we may look to depending on what the market what the market is calling for we may look to put down mark money hard from day one meaning that our money base with the contract regards of due diligence is hard from day one so if we find something in there that was maybe possibly outside of what we were thinking was going to be from the onset we've already committed our money. So it's not always the best principal if you don't have to do in your market, but it makes you a stronger offer past that we will also do a write-up to basically support our offer, the last thing you want people to do in especially if you want people to respect your offering how brokers continue to send you deals, is to be able to write out or explain in a quick sentence.

We don't need to write a novel why we are summing this offer for what reasons based on outstanding repair is based on dynamics in a market why is your offer maybe not at asking or not even close to asking and with this it also helps to broker tell a story of how you're presenting your offer and also gives you the best shot to be able to get in there and get the deal. You have to imagine if an owner or a seller is getting an offer and the offer is a seventy-five percent under market or under asking if it's just an offer without any explanation it's just going to come in as a lowball offer but if you write into this right here and you provide a strategy of why you're submitting this offer based on what concepts based on what metrics and at least give some guidance why you're coming through with this particular offer.

For structure of an offer at least the owner knows and you're not just low balling which can be a really important thing also let's know and this is with any offer that you've actually put thought into this offer it's not just something that you picked off the top of your head like these are the metrics these are the these are the ideas behind the offer correct you've looked at the offer you've analyzed that you've done your homework and you're not just taking 10 different offers and just throwing out a 60% price offer on each one and just hoping for the best. Not just throwing darts, so explain your offer, write strong terms, be specific in if you really like it put a contract together instead of an LOI that’s nice, but it's just a lead-in for a contract, those are a few things we do to just be more solidified on offer and also prepare best foot forward.

Learn how to buy large multifamily properties: https://www.multifamilyfoundation.com/order-28415099