Man, this is a question I get all the time…
“So, J., how do I know how much to write my offer for?”
“How do I write my first offer?”
This is such a big brain hurdle for some people that I thought I’d cover the topic in a recent livestream. Take a look…
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The price doesn’t matter as much as you think…
Truth is… you can write your offer for any amount you want.
After all, you aren’t looking at properties that are listed or have signs in the yard.
You can, but that will limit you and then you’ll be dealing with agents, and you don’t have to. There is another option.
You should be making the offer directly to the homeowner (a.k.a., the “seller), which is nothing to be nervous about.
You talk to strangers all the time… and, besides, some sellers won’t be strangers. By that I mean you may have an aunt, uncle, other relative or family friend (or friend of a friend) with whom you have a bit of a relationship already.
When they find out that you’re making offers and can work directly with them in buying their property, you might be surprised by how open they are to the idea.
Some of these people will be really happy to learn of what you’re doing!
You want to know what all of this can lead to? Go here and watch a quick video:
Remember… An offer is just an invitation for a conversation!!
That means you can make your offer for any price… even a dollar if you want… no kidding.
You will make an offer that is below market value, because the offer is just the beginning of the process.
It is not the end.
So, remove the pressure by understanding that it’s just a way to open your conversations with sellers.
You have a few conversations coming once you see a seller is warm to working with you. The cool part is that more people will want to work with you than you probably think! (That’s the fun part about doing deals in real estate.)
Early on in my podcasting life I dedicated an episode to building relationships with prospects. Here… give it a listen:
How do you make your offer anyway?
Here’s a promise…
It’s not as complicated as you’re making it out to be in your head.
Let’s say you find a property that you like and it passes your go/no-go test.
Your first step is to make a VERBAL offer.
If you see the homeowner in the yard, you can start a conversation right then and there about your interest in their home.
That’s the most important thing… getting those conversations started.
But maybe you’re afraid of talking to people. Hey, I get it, but you’re going to have to learn new skills and then it will be okay.
You get to move through the 4 levels of learning.[/fusion_text][fusion_text]The written offer is the follow up to the conversations. However, sometimes you won’t have that first face-to-face conversation, which is fine. That means you go right to writing the offer.
The more offers the better.
Again, it doesn’t mean the seller is automatically going to accept your offer. It’s just a way to get the relationship under way.
That’s what you’re doing… building relationships by solving problems through your real estate transactions.
As a real estate entrepreneur you are a problem-solver and serve others. That’s what allows you to make offers on properties if the first place.
If you need a bit more understanding about that last statement, watch this:
What’s the next step when your offer is accepted?
- You found a property you want to get under contract…
- You chatted with the homeowner or you sent him your written offer…
- You had further conversations and you came to an agreement…
- You’ve written up that agreement based on what you and the seller have agreed to…
Now you have a period of time that you will have to raise the capital you need to close the deal. And before you freak out, you need to understand:
- You absolutely can raise the private capital you need for all your deals,
- You have a period of time to do it once the offer is accepted, and…
- There are due diligence items that the seller will have to get to you before close.
Due diligence is another topic that gets people fearful of making offers. So, let me take the fear away from you. Listen to this episode of my Cash Flow Diary podcast. It’s all about due diligence…
All this means is that you can make offers on lots of properties immediately and not worry about where the money is coming from, because you have plenty of time.
The money will come if you learn how to raise the capital.
I’ve raised more than $10M in private capital for all sorts of deals. If I can do it, so can you!
But first you have to get comfortable in writing offers, so get out there and write a bunch of them this week!
You can move faster than you ever dreamed possible. If you don’t think so, take a look at this Quick Offer Kit (which is 3 documents on 5 sheets of paper that allow you to get out there and make offers today):