Those of you who listen to my podcasts or read my emails know that I believe in creating good systems and letting the systems work for me.
So, I want to share with you a system I’ve been using with GREAT success…
It’s a simplified way for your VA to make 10 (or more) offers a day on distressed homes on the MLS… over email.
That means you’ll need access to the MLS—either by becoming a licensed agent yourself or having an investor-friendly Realtor on your team.
You’ll teach your VA how to make what I call “soft-pass offers” to Realtors.
Here’s how it works…
My VA finds MLS properties in my target zip code that have been listed on the market for at least 90 days and that need work. Then, she hops on Zillow or Redfin to check out those properties in more detail…
Meaning, my VA checks out the pictures and looks for clutter, outdated kitchens, bathrooms, wood paneling, etc.
Then, she enters the info about that property into a spreadsheet or on Podio.
Next, she makes an offer over email. But here’s the thing—we don’t spend a lot of time evaluating or analyzing… we come up with the offer this way:
- If the asking price is above Zillow’s price—we make an offer at 85% of that Zillow price.
- If the asking price is below Zillow’s price—we make an offer at 85% of their asking price.
The goal is to email the agent an offer that it not so ridiculously low that they get mad and ignore you… it’s within the ballpark of the list price.
My VA sends a simple, concise email to the listing agent—she found their email address on Zillow or the MLS.
So, email the agent, with a proof of funds letter attached. The email can read something like this:
Hey, my name is Joe and I noticed you have this property listed at 123 Main Street, and it looks like a house I might be interested in and I’d like to make an offer on it. But before I waste your time or your client’s—since I’m an investor, I usually make offers that are substantially lower than the list price—so I want to make sure you know that so you’re not offended.
I just want to see if I’m in the ballpark. So, will your client accept something in the range of $XXX-$XXX? I’m a cash buyer and can close quickly and I don’t have any long, drawn-out contingencies.
And, I’m not a Realtor and I don’t have an agent representing me, so if you want to write up the contract, you can have both sides of the commission.
Now, be prepared: You’re going to get more ‘No’ responses than ‘Yes’ responses.
But you will get some responses along the lines of: “Yeah, my client might consider that price.”
And, you’ve softened the blow of your lowball offer by telling them straight out that you’re an investor and those are the kinds of offers you make.
Make sure you include a 2-week inspection period in your agreement—that affords you the time to shop the deal around to your cash buyers list to see if anyone is interested in the deal and to go to the property…
See, you’ll want to check out the property because it’s likely going to need work—I advise you to take an investor buyer or contractor with you—they’ll help you determine repair costs.
Pro Tip: If your hard money lender won’t finance the deal, walk away.
And know this: based on your walkthrough, chances are, you’ll need to renegotiate the price.
You’ll simply tell the Realtor that the house needs more work than initially thought—and based on nearby rents and resell value, the numbers that are calculated in your spreadsheet just aren’t working, so you’ll either need to lower the price or cancel the contract.
Blame the numbers. That’s all.
Bonus: If you get a Yes from a Realtor, consider them a terrific new contact. Email them every couple of weeks to see if they have any deals you’d be interested in.
Pro Tip: If you already have an agent on your team—they can send these emails and act as the buffer… “I’m an agent and I have a cash buyer who’s interested in your property…”
It really is simple. Create this system and scale up.
Just imagine this…
Your VA finds distressed properties that have been on the MLS for at least 3 months and sends 10+ soft-offer emails a day to the listing Realtors.
That’s plenty of offers to be made…
Remember, this business is all about making offers! LOTS of offers.