What to respond to seller?

Question

I was doing driving for dollars and found a burned property in my area. I called the seller immediately, he didn’t respond, but instead sent me a text. I offered to buy his house as is for cash. He responds what’s your offer? I respond I can’t give you an offer over the phone because I have to do homework on the property. Then he responds that someone offered him 150k already for the property. I texted him back and asked if I could give him a call and ask a couple questions about the property. He hasn’t responded since. My question is what should be my next move going forward? I know there’s a bid on the house for 150k and the seller don’t want to talk on the phone.

Account Closed · Answer

"Cash talks and B.S. walks."You cannot be sure the owner is telling the truth about someone making an offer for $150k. Maybe, the house is worth only $100k and he is blowing smoke.

After you look at enough properties you should be able to get an approximate value from the internet and by looking at the outside of the house. When you know enough about construction and prices you can guess the cost to rehab the house. My next move would be to write an Offer To Purchase, submit a check made payable to an escrow company and make the Sale Price contingent upon inspection of the property, approval by your CPA and contractor and give yourself 5 days to cancel the sale starting after the seller accepts your offer.

Barry Pekin · Answer

@Dwayne Jelks Jr.,

That's a personality and style kinda thing.  I haven't had to do that, so I can only guess.

I would take on the strategy of the reluctant buyer at this point.  The more desperate you appear, the stronger his hand.  I think I'd probably send something like, "Hey Joe. I know you're busy, so I won't keep bothering you.  Send me a text when you get a chance if you're interested in selling."

And honestly, I wouldn't spend too much time on him.  Maybe schedule a follow-up text in a couple of weeks, but then don't do anything for at least a month.  If he's not responding, he's not motivated.  Of course, there's that whole burnt-down house thing.  That's why I wouldn't completely drop it.  I like the monthly thing for a little while because you can always just text, "Hey Joe, did you get your house sold?  I'm just curious how that turned out for you.  Let me know and I'm here if you need me."  I'd also check the county records (mine are online) to see if he sold it.

Remember, your time is precious.  If he's not interested in selling, you are better off spending your time elsewhere - looking for more/better deals.  It can't hurt to check things out once in a while, but don't get stuck spinning your wheels on this.

Also remember that wholesaling is a service you're providing to the seller (and ultimately to the buyer as well).  That's what you're getting paid for.  The property is almost secondary.  If he's in a tight spot, and you can help, that's what it's all about.  If he doesn't need you, then your efforts are better spent elsewhere.

Listen to the Wholesaling Inc podcasts.  They have some great stuff in there that help me a lot!

Ola Dantis · Answer

@Dwayne Jelks Jr. Dwayne, if you are sure of your price level, text your offer to him. Not everybody likes talking over the phone.

If the Seller doesn't call back, then this deal isn't yours.

Remember, the law of averages.

You probably need to go through a 100 deals to find a great one, so refrain from getting fixated on one deal. Not worth it.

Barry Pekin · Answer

@Dwayne Jelks Jr.,

Wholesaling starts with seller motivation.  I'd say that having a burnt-down house is pretty good motivation, but you CANNOT assume that.  You need to start with assessing the seller's motivation.  You might be able to do this with texting, but I think it's a conversation that needs to take place.  Maybe he doesn't like the phone, and you need to pursue this through texts.  Maybe he's not really motivated and you shouldn't waste your time.  Maybe he's trying to assess your level of motivation to see if you will pay higher.

Bryan Devitt · Answer

I wouldn't trust only dealing with texts. You could be wasting your time talking to a family member that got the message and not the owner. If they're really motivated they will call. Also if they're openly saying they got an offer for $150k, that is more than likely their dream price and not what someone offered. If they thought it was worth that or less, they would have sold it already. Follow what Barry said to waste a minimal amount of time

Account Closed · Answer

Sorry! That is; more than 95% of pre-foreclosures get cancelled.

Account Closed · Answer

Unless, I had nothing but time, I would not knock on random houses. The best and simplest homeowner to go after is those in pre-foreclosure and those properties that have an Auction Date. Not just every property listed as a pre-foreclosure. The only place I know of where you can get properties with an auction date is auction.com. Auction.com is a little confusing when creating a list of auction properties. So, watch the video on youtube and search BLPREI. Then, the best way to approach the property owners is to pay them a personal visit and continue to send letters and literature.

I gave up on using lists of pre-foreclosures purchased on the internet because more than 45% of the foreclosures are cancelled.

Roni E. · Answer

I would do your homework and see if that price works and also mails the seller a followup letter.

Keith Perkins · Answer

I would ignore the 150k comment to be honest.  You let them know you are interested in the property.  Your next text should be what you want to buy the house for and sell yourself as well.  "I have the cash ready" Or something to that extent.  Also really make sure you do your homework and make sure you are not going to have some hidden problems.  You could be dealing with someone who has wasted time talking to wannabees and they are not interested in speaking with someone who is another wannabee.  Maybe that 150k offer was from that person and they couldn't close or they could be lying.  Either way you should ignore the offer and let them know what you think the home is worth and sell yourself.

Barry Pekin · Answer

Good luck!

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