Making the offer-what are the options?

[Jeff Lee]

How does everyone make their actual offers? This part seems to be glossed over frequently in all the stories of how people make deals. Do you use an agent? Are you an agent? Does your wholesaler take care of the paperwork? Do you figure out all the paperwork in your state some other way? And what are the pros/cons of your preferred strategy?

Interested to learn all the different ways people approach this part of the process!

[Ryan Blake]

@Jeff Lee It all depends on where the lead is coming from.

MLS - I will use an agent or on some properties I will go straight to the listing agent and make the offer through them declining representation. This means that the listing agent would keep all fees or may even lower them for the seller. Either way, I feel like you can get the listing agent pushing for you to get the house when you do it this way.

Off Market - I will use the state TREC paper work. You don't have to be an agent to use it. If you choose to go with your own contract, make sure to have an attorney review it. I wrote out my own using much of the verbiage from the TREC form and had it reviewed. It saves money having someone review it verse writing it.

Wholesaler - Most wholesalers are putting too tight of a spread on their deals these days because of the market. Be careful and know that the price the wholesaler says it is up for is still negotiable. Probably expect about 3%-5% of the price they are asking for is profit. You can cut into that a little bit to make the deal even juicer.

The best strategy for finding deals is going to utilize all three of these. Have an agent and continually look over the MLS, send out direct mail, bandit signs, and other advertising, and get your name on as many wholesaler lists as you can.

Good luck and persevere!