Getting More Offers Accepted With Sellers: A Trick Im Sharing with You

[Bill Mitchell]

We all know about the 70% rule and how it works. But if your numbers are correct for ARV and repairs, and then have to back out your assignment fee as well. Sometimes its difficult to get your offers accepted because they are lower than the seller is willing to accept.

A new solution I found to this is simple. Get on the MLS, see what the cash sales are in the area. Try and get under the price of similar properties that have sold recently for cash. Even if the price doesn't give the end investor 70% minus repairs.

I will show you an example.

Property was in bad condition, tenants had destroyed it and deferred maintenance owner wanted out. After getting accurate repair and ARV and backing out my assignment fee I could only offer him 21k for the property. That wouldn't work, I hopped on the MLS and saw recent comps for same type of property.

Sale 1: 32k

Sale 2: 34k

Sale 3: 30k

I got it under contract for 29k and made a quick profit on this one. Even though at those numbers its no longer 70% ARV minus repairs, it doesn't matter because I could see on the MLS investors in the area are buying higher than that. If that's the price they are willing to pay, I will provide them something slightly more discounted than that. Then call up the cash buyers myself and let them know I have a similar property in the area at a better price. This way everyone wins, seller gets more money, you assign the property and the investor gets a "deal".

Even though, in my opinion, buying in this way there is not a ton of meat on the bone for the end investor and allows you to get more offers accepted. But hey if thats what they are willing to pay I will provide for that.

Let me know what you guys think or if you have any questions. I would be curious as to what more experienced wholesalers around here think such as Tim G or Jerry Puckett think.

Thanks everyone