What's the Biggest Addition to Your REI Business in 2020?

[Jonathan Greene]

Goals are set out in front of us as something to strive for, but oftentimes we just end up chasing our ambition the whole year. And when we can't catch up to it, we either give up or put our heads down and say we will do better next year. Instead of a "How Many Doors Do You Want to Buy in 2020" post, I thought picking just one thing to add to our REI business might benefit us all. So, what's the biggest addition you are going to make to your REI business in 2020?

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My smartest addition is going to be a streamlined and controlled offer sheet for the seller that is really just an enhanced LOI. This is what will be in the document:

1. Offer Summary page/Offer Options - this page will have the major deal points only. Offer price. Earnest money. Financing or POF explanation. Closing date. Inspection minimization clauses.

2. Offer explanation. Why my offer is "so low" to the seller and how I support it. This will include short comp analysis, block value, and renovation costs, as well as the ease of transaction discount I expect for bringing cash and closing ASAP with limited inspections.

3. Comp and full market analysis summary. This is a focused group on truly comparable properties that have sold within the last year, within one mile at most, and with only similar characteristics.

4. Personal transaction history. This is segmented into currently held properties and deals completed.

I prefer this type of document to sending a contract first because it is straightforward and much easier to read and process. It also shows them upfront that you have done your full research and are a neighborhood and investment expert and not just looking to lowball every house on your hit list.

I would send this out to sellers who I have previously made contact with on the phone and seen the property. It would be the first follow up after a property visit, but I can see it being used in advance of property visits as well.

What about you?