Creative ideas in a hot market

[Noah P Bonds]

Getting outbid by multiple offers all above asking here in Boise, ID... just trying to think outside the box before I throw in the towel here. First thought was to crank up the ernest money amount. I guess I just want to know what an irresistible offer looks like. Yesterday’s offer was 5k over asking and we didn’t even get a response... agent called to check in and they said they had 6 other offers and wanted to see what happens over the weekend...ugh. This is for a duplex that has coc return of maybe 5% and has only been listed for 24hrs. Last one was a 4 plex at 4.5%coc and it had 6 other offers all above asking all within 24hrs of listing. Basically I want to know what an awesome irresistible offer looks like in times like these.

[Joseph Gozlan]

There are a few strategies we use with our clients (and use ourselves):

1) You leverage terms for your advantage. Quick closing, all cash, shorter option period, hard money after inspections, less contingencies, etc. At the end of the day, the seller and his agent want to give the contract to the person they believe has the highest probability of closing. We just had a similar situation of multiple offers in one of our clients deals but instead of increasing the offer amount we made the terms a lot more aggressive and got awarded the contract. 

2) Find the deals off the MLS - wholesalers, FSBO websites, driving for dollars, door knocking, direct mail, farming, etc. Go to the seller before he takes the property to the market

3) Partner with a realtor - tell them you will sponsor a direct marketing campaign (or FB ads, Google Ads, etc.) and in return he gives you first access before he takes the property to the market.

4) MAKE a deal a good deal. Find the properties that have been on the MLS for a while and don't seem to be a great deal based on the current price and make offers at a price that will make it a good deal for you.

5) Find bigger deals. Partner up with a few investors and target bigger deals. The bigger the deal the higher the barrier for competition.

Good Luck!