Howdy,
Any opinions on using one page, preliminary offer sheets (as suggested by Bill Bronchick in “Flipping Properties”) vs. completed TREC contracts when shotgunning multiple offers to multiple banks on REO property?
Thanks in Advance…
ScottC
Hi -
I don’t think it really makes nearly as much difference as you might think. What can make a difference is your ability to complete the purchase on time without much (if anything) in the way of contingencies.
For years, I made a living purchasing assets from banks all over the nation and I can tell you that word gets around pretty quickly if you’re just blowing smoke.
Whether its a preliminary offer sheet, a letter of intent, or a completed contract I make it a point to remove any and all doubt about my ability to close.
How?
Simple. I include a cashier’s check for the full amount along with my offer. Clean and neat.
Sometimes, when I think negotiations might become protracted or the institution has other items of interest (to me), I open accounts – reserve accounts, escrow account, compensating balance accounts – doesn’t matter as long as everyone understands that you came “suited up to play”.
Personally, I don’t “shotgun” offers – not to banks, not to MLS listings, and not to individuals. I know that some people do and that’s fine for them but I’ve never had much luck with that system. Too little focus – too little time.
Take care,
Eric C
Scott,
I have successfully used a one page letter of intent when I “shot gun” 20 offers in one day.
It takes the brokers a little time to get used to the new format so expect some resistance at first. Once they know you’re serious and can close they will accept the letter of intent with less resistance.
Scott,
I’ve also tried it both ways. I used to have a TREC contract that was 95% completed on my pc and I would just add specific property and price info. I’ve also done the one-pagers.
Like Eric, I didn’t notice much, if any, difference. What seemed to matter was getting the ear of the decision-maker, or at least the primary who would present the deal for consideration.
Eric, I can see how inclusion of your check might alleviate closing concerns… :dance
If you have any extras you don’t need, just let me know and I’ll provide my address again. :thumbsup