Today’s REI Classroom Lesson
John Martinez elaborates on why it’s not such a good idea to send blind offers to motivated or non-motivated sellers. It’s important to remember that your offer is your leverage.
REI Classroom Summary
Conversation is needed in order to find our their reason for selling and by providing a blind offer, you’re cutting off the need for communication. John shares a tip on a strategy to utilize to take the place of a blind offer that encourages communication.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
John: Hi, this is John Martinez, with Midwest Revenue Group, for REI Classroom. And the question I want to answer today is should I send a blind offer to sellers, motivated or unmotivated?
Mike: This REI Classroom real estate lesson is sponsored by theinvestormachine.com, FlipNerd’s private investor coaching program, and your blueprint to investing success.
John: So I get this question all the time, right? You maybe put out some marketing. You get a lead in. You call the lead, the seller, and they say, “You know what? No need to come out here. No need to have a long conversation. Just send me your best offer.” So what do you do in these cases? Well, let me kind of start this way. Your offer is all the leverage you have in a sale scenario so you want to be very careful about just sending out blind offers. You see, when it comes to selling, when it comes to dealing with motivated or unmotivated sellers, you usually have to have some type of conversation with them in order to really find out what you’re there to help them with.
Now, we all know this, if you’ve been in this business long enough, that when you do a deal, when someone sells you their property, it’s going to be because there’s a problem they need help with or an opportunity that they want to get to or capture. And you really can’t find that out or differentiate yourself, your company, your service in any way until you have that type of conversation. Then there’s a whole other type of conversation about how you value their house and kind of taking them through, you know, what they get if they sold it retail, minus commissions, fees, all that. Long story short, there’s a lot you’ve got to talk about if you want to take possible deals and turn them into real deals, right? So you’ve got to have that conversation.
Here is the deal. If you send a blind offer, that conversation will never, ever happen because your offer is your leverage. The second you send your offer out via email, if you just let them know over the phone, however you deliver that, you’ve lost all leverage. And chances are you’ll never hear from those people again.
So instead of sending blind offers out, I recommend you send out a bracket, a range. So, “Hey, listen. I’d love to get you our best offer. It’s going to be somewhere between $100,000 and $135,000. But until we take whatever the next step is, until we have a longer phone call, I come out, look at the property, I do whatever I need to do next, that’s as far as I can dial it in for you. So if you really have an interest, I’d love to give you an offer down to the penny, but we need to do XYZ.”
So, long story short, don’t give away the only leverage you have in these seller situations. Give a bracket and leverage that into whatever your next step is. My name’s John Martinez. I’ll see you next time.
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