Do you want to increase the chances of your offer being accepted in a competitive market? Watch this video to learn 5 powerful negotiating strategies that allowed me to buy 110 rental units in just 3 years.
DISCLAIMER: please note that the information contained in this video is for educational and entertainment purposes only. You should always consult your own attorney and your own financial and tax advisors before making any legal or financial decisions. This video is not intended to and does not create any attorney-client relationship between the content creator and the viewer. The views and opinions expressed in this video belong solely to the creator and do not reflect those of his law firm or any of his business partners.
Affiliate / Video Links and Free Giveaways:
Sign up for a Roofstock account with my affiliate link here:
My favorite tenant screening service (RentPrep.com): - sign up for a free account - have your applicants pay for tenant screening directly to the site - no more need to collect application fees Watch my review and tutorial here:
Best platform for finding off-market real estate deals (PropStream.com):
- sign up for a free 7-day trial to test it out! - tons of features for finding and marketing to motivated sellers and cash buyers Watch my review and tutorial here:
Rental property analysis video playlist:
My free sample rental application: Watch the video here:
---------------------------------- Instagram:
Facebook pages:
LinkedIn:
TikTok:
Attorney Profile:
My blog:
My real estate brokerage: -------------------------------------
Number one is to offer a higher good faith deposit, also referred to as the earnest money deposit. Assuming you have sufficient funds for this, you can offer more than what is currently the standard amount in your local market. So, if the standard deposit is, for example, $5,000, if you offer say $10,000 that will make your offer incrementally more attractive to a seller.
The more money you offer to put in escrow, the more confident the seller will feel that you will do everything you can to close. This, by itself, will likely not get you the deal, but when you combine it with the other tricks I will talk about, it will make your offer that much more competitive.
Number two is to provide a solid proof of funds. Whether you’re planning to pay all cash, use private or hard money financing, or use bank financing, you should absolutely have a letter or a statement from the third party who is providing you the funds indicating that you have enough funds available to close the deal at the price you offered.
Number three is to waive the financing contingency. Obviously, sellers are not particularly keen on having to give the buyer a month or two to find out whether or not they will have the money to close, all the while tying up the property and preventing other potential buyers from closing on it. If you can waive this contingency, your offer will appear that much stronger to the seller.
Number four is to waive the inspection contingency and buy the property “as-is.” Similar to the financing contingency, most standard form contracts have what’s called an inspection contingency. An inspection contingency allows the buyer, within a set period of time, to have the property inspected by a licensed inspector or some other third party to determine whether there are any major defects in the structure of the property.
Given the fact that inspections can possibly result in a buyer demanding tens of thousands of dollars in credits thereby significantly reducing a seller’s profit, if you could come with an offer which waives the inspection contingency and uses the other tricks I talked about, your offer will have a very high chance of being accepted even if it’s not the highest.
Number five is providing several alternative offers. The key here is that the seller is being offered several options to choose from. While the option to say “no thank you” to all of them is still there, it will be much further from the seller’s mind because the seller will be preoccupied in comparing the different offers you gave him.
Read More
By: Succeed REI Title: 5 Powerful Negotiating SECRETS Every Successful Real Estate Investor NEEDS to Know Sourced From: www.youtube.com/watch?v=0Mbp9xqfTs4
