Getting down to actually making the offer

[Cody Steck]

Ok, I have read books and listened to podcasts and videos. I've talked with local investors, a few developers, and have good contacts with a builder. I've attended my local REIA. I feel like I am starting to get into "analysis paralysis". I want to avoid this and jump in.

I have called sellers and spoken with realtors. I have found a few deals that could work if, of course, the purchase price works. The thing I feel that is really holding me back is how do I actually make the offer?? I am not working with an agent and I am an not one myself so as far as I understand, the offer could literally just be some simple words written up on a piece of paper. Obviously, if it was accepted we would enter into a more formal contract.

What do I need to do? Should I just send the realtor/owner an e-mail stating the offer price and terms? Should I attempt to use a REPC from the start? Do I need to do something in person or over the phone? Any suggestions?

[Stephanie Dupuis]

What are you offering on? Is this an MLS property, FSBO, etc.? If an MLS property, use an agent - it's in your best interest and will cost you nothing. In fact, it may save your tail and save you $$. You can also use an agent for other properties and the agent can negotiate the commission with the seller, that's also an option.

If you don't want to use an agent, then you obtain a PSA (purchase and sale agreement) and make the offer by filling out the PSA and giving that to the seller. You need to know how to complete/fill out the PSA correctly. I recommend purchasing a PSA from a real estate attorney. Speak to an attorney and have them teach you how to fill out the PSA correctly. Some think this is over the top (until they find themselves in hot water). Go back to your REIA and find out who they are using to get quality PSAs and learn to use them correctly. There are other ways to get PSAs, and I believe using one from an experienced attorney (if you don't use an agent) is a smart way to go. Or, hire an agent.

Others will hopefully contribute to this and fill in the blanks. There are several ways to handle your situation.