I am live on Zoom, Facebook, and YouTube in this episode. I’ve collected some listings from this Zoom call and I am going over them with you here for the first time. I am detailing how to find comps, calculate the ARV, and prepare an offer.
When you’re looking at a listing, it’s important not to do too much research before you talk to the seller. However, you do want to be clear on the best fit price for the property. I check several listing sites, the MLS, find the rental value and create an average value. This is key when preparing any offer.
Building the best offer is going to include options. I love a 3-option-offer because you’re giving the seller choices and creating a better opportunity for yourself. Option 1 would be a cash offer; this would be the lowest price because your seller doesn’t have to wait for the money. Option 2 is a lease option; this is a middle ground price, and you’d be paying monthly for the house. Finally, option 3 is an owner-financed offer; this is going to be the highest cost, because the seller is waiting long term for their money.
While having an idea of the best ARV for the property, it’s not always set in stone. You can definitely change your mind and make adjustments even after talking to the seller. In this case I always blame the 3 R’s and underestimation of repairs, rent value, and retail value is going to affect the ARV.
My biggest takeaways for you today are:
—Send an offer to every seller you talk to.
—Send your offers in multiple ways, especially the physical mail.
—Give your seller options.
If you stick to this advice, I can assure you that you’re going to have many, many active leads. The money is in the follow-up!
Watch and Learn:
Listen and learn:
- Live training via Zoom, Youtube, and Facebook.
- How to come up with comps, estimated repairs, and create a cash offer.
- Why I love a 3-option-offer.
Mentioned in this episode:
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