How To Make Offers That Get Accepted In Real Estate Investing
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How To Make Offers That Get Accepted In Real Estate Investing
| Date Added: February 08, 2011 09:51:38 AM |
| Author: shakir@resellerservers.net |
| Category: Real estate & Construction |
| The biggest challenge that real estate investors face is to make offers that get accepted. When investing in real estate, buying properties is the basic foundation of any real estate investing business. You cannot make any money unless you buy properties. Here is how to make offers that get accepted. The offer you make depends on the type of property you are buying. 1) Buying from motivated sellers It is important to have the following pieces of information if you buy houses from motivated sellers: a) Market Value Find out the conservative market value of the house when in perfect condition. You must have this information before you can make any offer. b) Mortgage balance You must get this information before you can make an offer. A seller who is not willing to disclose this information is not motivated enough. Move on to a motivated seller. When buying a property, the mortgage balance must be low enough to allow you to make a profit. It must allow you to make a profit and own it free and clear. c) Repairs needed It is possible to estimate repair costs with the information provided by the seller. You must know how much you need to fix up the house before you can make an offer. Of course I like to see the house and do my own repair estimates. d) Asking price Taking into account the 3 pieces of information above, if the owner is asking for too much, you might never make it work. The market value, mortgage balance and repairs must be taken into account in a good asking price. You can then make an offer based on the asking price. If at all the mortgage balance and repairs allow you to make an offer that can leave you with a profit, by all means do it. No offer can be too low even though you need to consider the seller's needs. If they face foreclosure, their asking price might be to just walk away from the property, or they might need some moving cash. It does not make sense to make an offer when the mortgage balance is too high compared to the property value. Drop it and move on to the next one. When all is said and done, the only bad offer is the one you have not made. Always make all the offers that make sense to you. You'll be surprised how many get accepted. 2) Buying foreclosed properties The asking price and repairs are the only important considerations to make in this case. The bank is trying to offload their inventory and are willing to negotiate. In today's market, most REOs will be listed below market value. If your numbers look acceptable, by all means make an offer. Remember to make your offer lower than the asking price. In order to be successful in real estate investing, it is necessary to close as many deals as possible while spending as little time, money and effort as possible. Learn how you can achieve this by automating your real estate investing business with an automated real estate investor website. Visit: http://www.realestateinvestorswebsites.net |
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