Monday, December 30, 2013

Calling all deadbeats, Scum, bottom feeders, wankers and Real Estate Investors. Low Balling time.

By reading the title above you might think I'm calling all Real Estate Investors Scum bags.  On the contrary. I'm referring to what some fear sellers might say to you when you're making low ball offers.  Personally I've never been called anything more than a bottom feeder and it was indirectly. The seller politely stated "I'm not taking any bottom feeders offers. I want my asking price."

It is exaggerated that all sellers get angry at low offers.
I have heard from other Investors that they have received calls from angry agents and sellers after making a #LowballOffer.  Some of the sellers are incensed that somebody would disrespect them by making such a ridiculous offer on their pride and joy.  In some cases they have a point, but when making low ball offers you don't have the time to research every property, so you just make blind offers. Its a numbers game and eventually you'll get the call you've been waiting for. What are some of the typical scenarios when making low ball offers?  How do you handle the objections to your low ball offers?  How can we turn a angry call into a new real estate deal?

Typical Scenarios that take place when making Real Estate Low Ball offers and how to handle them:

Scenario 1)  We discussed this above.  You may on some occasions get an angry call from a seller or agent.  Be polite and never lose your cool.  Simply state that you thought the place needed work or was a fixer upper.  You can even say you buy houses for cash site unseen and you thought this one needed major fixing. Turn the situation into a lead and ask the agent or seller if they have anything else.  If you're talking to the seller directly ask him if he's buying any other real estate or looking to invest in the future.  Ask if he has others for sale. Follow the advice in my other blog about using your personal network of power and turn this into a lead. 

Scenario 2)  When the agent or seller calls you and isn't angry but is happy you made an offer.  The problem in this scenario is the offer is to low but the bright side is that the seller wants to make the deal work.  He or she needs to sell or you may have a hungry agent who really needs the commission, or maybe the seller just want to close this chapter and move on. The problem is they would never sell for such a low price. Might as well give the property to Uncle Jack or rent it out for a few more years until it sells. This is a great position to be in.  Don't focus on the why and try to work out a scenario that will benefit all parties.  You may still have to come up with some money but in this scenario the likelihood of getting a deal done is very high.  If you don't have the money try wholesaling or bird dog the deal to an Investor.  Here is a recommended Investor that will give up to $2000 per deal or take over your contract.

Scenario 3)  They take the offer or counter with minor terms. What?  You mean this actually happens?  Why yes it does.  In my opinion it is much more rare to get a house that is in perfect condition for Cents on the dollar but it can happen.  Often in this scenario you'll get a discount because the house is dilapidated or needs major work.  Do you care? NO! This is what you're looking for.  The beauty of getting a house like this is that not only will you get a discount but you'll also be able to get past all the problems and see a diamond in the rough.  That's really the only real trick to #RealEstateInvesting.  See what others can't see and create what other couldn't create.

For some the pressure or even the time that it takes to send out low ball offers is too great. Low balling for profit can be a win win situation for those of us that are dedicated and willing to put in the work. The best transaction are those that benefit all parties so never take advantage of a seller.  Remember the RE investment world is a small one and it only take one bad deal to ruin your rep.  Be courteous and never give up. Hard work always pays off and you'll find the perfect deal.

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