How To Get Your Offers Accepted To Buy Properties

The biggest challenge that real estate investors face is to make offers that get accepted. Buying properties is the basic foundation of real estate investing.

You can only make money if you buy properties.

This is how you can make acceptable offers to buy properties.

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
Be sure to get the fair market value conservatively when the house is in perfect condition. You cannot make any offer until you have this information.

b) Mortgage balance
You must know the mortgage balance before you can make an offer. If a seller is not willing to provide this information, they are not motivated enough. Move on to a motivated seller.

The mortgage balance must be low enough to allow you to make a profit when you buy the house. 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
Given the above 3 pieces of information, if the seller is asking for too much, the deal might not be worth it.

The market value, mortgage balance and repairs must be taken into account in a good asking price. Your offer can then be based on the asking price. Make an offer if the mortgage balance allows you to make a profit.

Even though it is necessary to consider the seller's needs, no offer can be too low. If they are facing foreclosure, then they probably need some money to move, or their asking price might be just enough to get away from the property.

It does not make sense to make an offer when the mortgage balance is too high compared to the property value. Move on to the next deal.

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. Some will be rejected, some will be accepted.

2) Buying foreclosed properties
The only considerations to make is the asking (listing) price and repairs. 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 always make a lower offer than the asking price.

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