jan29_contractOne of the most important skills you need to 
develop in this business is the ability to make
 offers. . . NOT just any offers, but offers that get accepted. Unfortunately, there’s no shortcut to acquiring
this skill. The only way you become good at
 this is to consistently make offers.

When you’re starting out, it’s expected to have 
offers turned down again and again. Just make
 sure you’re taking note of the reasons 
your offers are getting rejected. 

Maybe you offered too low. Maybe you made 
a miscalculation on the repairs needed. Maybe
 you’re leaving too little room for your buyers to 
breathe.

 You should take note of all these little things
because, in the long run, this will create a clear guide on the kind of offers you 
should be making in your market.

When making offers, especially through emails,
 it is important to make things as easy as possible for the recipient. You do this by 
making sure all the necessary documents are 
included in your offer such as your proof of funds.

 Let’s face it: it’s a whole lot easier for sellers 
to say “yes” to your offer if you can show them
 right off the bat you got the goods to back it up, right?

Create some criteria and use it to determine
 your threshold for buying. For instance, decide 
that you will pay $50,000 TOTAL (initial investment +
rehab costs) for a 3 bed/2 bath block property 
and refuse to budge from this stance.

 Keep your emotions out of it! You will not be living 
in this house. It is strictly a moneymaker as far as 
you’re concerned, so the floor plan should only 
matter from a “Will my prospective tenants like this?”
 perspective.

When the bank counters your offer (and they most 
likely will!), be prepared to defend your original offer 
if you’re already at your threshold. I would suggest 
sensationalizing the inspection to work them down
on price. For instance, have your contractor/handyman 
create an estimate that includes every single possible
 repair. Be sure the estimate reflects retail (read: inflated) 
pricing as opposed to the investor pricing that he
 typically gives you. Depending on the asset manager
handling the file, this may impact their willingness 
to work with you on price.

At times you may find that you have a lot of competition 
on a particular property. If you get outbid, it may be 
worth your time to contact the investor who got it 
and see if you can work out a quick deal. 

Many times the other investor may want to flip it over
to you for a quick $2k. If the numbers still work for you,
 you can move forward. If not, move one. But don’t ever
 begrudge another investor when they make a profit. 
Just be happy for them and move on. You don’t
 want them begrudging you if you’re the one who
 closed a deal, right?

So start making offers today. The sooner you get 
started, the sooner you hone your skills.