Successful real estate investors make a lot of offers. It's common sense that the more offers you make, the more deals you are going to close. But I want to talk to you today about how an offer can actually be atool to find the "motivated seller" that every investor dreamsabout. After all, this is a business of accepted offers and motivatedsellers are an investors best friend.
Like you, I'm a very busy person.
The last thing I want to do is put a lot of work into something only to find the seller isextremely difficult and I have a little shot at actually getting the property.So I make a lot of initial offers and gauge the responses of the sellers.
The offers I usually make are so low, they're actually embarrassing. As my friend Ron LeGrand says, if you're not embarrassed by your initial offer, it's too high.If a seller comes back to me with a counter offer closer to myoffer then I know he/she is more likely to be a motivated seller.This shows me that I can now invest more time into the deal.
So essentially, the offer is a test. If they simply say no to your offer then they are probably not motivated to sell and you could very well waste a lot of time doing due diligence that will probablynever pay off. You won't know this unless you make the offer, so I hope you understand that making a lot of offers is very important in so many ways.
Of course there are all kinds of opinions of a perfect formula for the offer. But that's for another day.Start to see your initial offer as a way to save valuable time and away to gauge the level of the seller's motivation. This will encourage you to make more and more offers and eventually it willpay off.The best always,Michael Kimble
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