Does anybody have ideas on setting up an offering system for making a lot of offers.
We offten hear that the guys getting great deals are the ones making a lot of offers. Maybe up to 100 a month. Stated that its a numbers game and that you must make a lot of offers.
The offers that I am making are obviously in my favor. The issue is that how are investors making that kind of volume of offers??? Are they using a Real Estate Agents and if so. How is the compensation for them…
The Agents that I have spoken too do not want to make that many offers knowing that a very small percentage will actually work out.
Are investors using letters of intent to purchase rather then a full 6-8 page REPC offer…?
I am just looking for some ways and/or options to making a lot of offers. What works or not. :shocked
if your making offers on houses on MLS you will need to use a contract, go to zip forms, you can join and have it ‘auto fill in’ much of the forms, it is a lot faster/easier than hand writting in the contracts,most realtors should use zip forms,but if they don’t want to do the contracts you can
keep talking to agents, find one that deals with investors, they understand how we work,
I agree. As a Realtor I get so frustrated dealing with 99% of Realtors who do not understand investing (had one this morning tell me that a sublease on a lease purchase is not an option…and then try to explain investing to me). You may not have much luck having an agent do the contacts for you. Are your contracts in Word documents? You could read up a little on mail merge which will make drafting many contracts much easier. As far as letters of intent vs. full contracts… I’m not sure. I think the full contract would have more clout (when all a seller has to do is sign and their house will be sold) but I don’t have much experience with making a lot of offers (yet).
Yes, it is a numbers’ game. However quality is also important besides quantity - with so much inventory out there, and buyers looking for specific properties and deals, you also have to be selective as an investor.
Agents have access to tools to submit multiple contracts and also there are several tools/programs on the internet for submitting multiple offers.
However, I believe being selective - better properties, hand picked, for selected investors. You will work less and you will make more money.
This suggestion may be over-kill for your purposes, but one of the most successful investor/flipper/merchandisers in the nation lives here in Southern California. His name is Mike Cantu. He hires/contracts with a ‘dedicated agent’ whose only job is to write up, submit, and babysit offers and counter offers for him. The agent pours over the MLS in at least three counties, and sifts in all the ‘best’ property to make offers on.
Mike puts out about 200, full, written offers per month (that’s 2,400/yr). For me, I have a hard time finding that many houses that I want to make offers on… This number doesn’t include working on the past offers. So, conceivably, he’s working on several hundred offers all at once. It’s just the leading edge of offers that hovers at 200/mo.
It took him a little bit to find an agent willing to do this for him. It’s not glamorous, and it’s certainly very hard work, but the agent make a LOT of money since he closes on 10 or more houses a month if my memory is correct.
He also had to find someone who was newer and hungry to help him, and didn’t interfere with his deals. He does his own negotiating, not the agent. I don’t know how that works exactly. Meantime, his agent just submits and follows up on the outstanding offers.
Mike is a professional negotiator as you might suspect.