How many times have you heard me say this?
“Make 5 offers a day.”
If you’ve read my other emails… or listen to my podcasts… or if you’ve been in any of my workshop presentations… or if you’re one of my coaching students, your answer will be:
“Sooooo many times.”
And that’s true—for good reason! 🙂
I say it ALL the time because making offers is the key to your success.
So, I want to take things a step further—rather than simply telling you to make offers, I’m going to break down the 3 different options I make as offers on my favorite kind of deal: lease options.
When determining whether to make an offer, Rule #1 is that I ask sellers LOTS of questions to see how motivated they are…
I want to know their situation, why they’re selling—I drill down to learn their level of pain.
Do they need to sell or do they simply want to sell?
I uncover that by asking them why they’re selling; what they’re hoping to get out of selling; how quickly they want to sell, etc.
So, after talking with them, if it sounds to me like they’re a motivated seller who needs to sell now… I like to send them 3 different options as offers in my “3 Option Letter of Intent”:
- Cash offer
- Sandwich lease option offer
- Wholesaling lease option (assignment)
Let me explain each of these:
Offer Option 1—cash offer: keep it simple! Zillow x 70% – estimated repairs – $10k (my wholesale fee) = cash offer #
Offer Option 2—sandwich lease option offer: 15% equity, $300-$400/month for cash flow or 25% of the rent for cash flow, for at least 5 years; I’m the tenant and manage the property so the seller doesn’t have to worry about it anymore; they get the benefits of owning an investment property without the landlord headaches
Offer Option 2—wholesaling lease option (assignment): offer a price close to fair market value, then sell my lease option to another tenant-buyer, and I’m done and out of that deal
In my letter, I also include:
- a brief description of how lease options work and their benefits
- an FAQ page
- a list of references—people and companies I work with like my escrow company, brokerage firm, attorney, Realtor, my BBB rating, etc.
- an offer for my coaching services to sellers, to teach them how to do a lease option themselves (no one has taken me up on this, but I still like to have it in there)
And, I make sure to follow up with them—the fortune is in the follow up, people!
BTW—I’d say about 50% of sellers take Option 2 and 50% take Option 3.
Don’t overcomplicate this business… make 5 offers a day.