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- 🏙️ If your offers not getting accepted, read this
🏙️ If your offers not getting accepted, read this
The GOAT of real estate, Sam Zell, once said:
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Now let's get to business:
The GOAT of real estate, Sam Zell, once said:
"The people who succeed in real estate do not do it because they’re smarter, but because they have common sense and discipline."
In this newsletter, I'll share my common sense on how to win offers.
Some may find this a great idea, and for some, it's not their way.
Well, you’re either going to love it or totally hate it. There’s no middle ground.
Let's dive in.
In real estate, relationships rule.
It’s simple: you’re more likely to close a deal if the seller likes you.
But how do you make that happen? How do you ensure your offer stands out among the competition?
Here’s how you can construct an offer that not only gets noticed but also gets accepted.
1. Make Seller's Broker your Best Friend.
Brokers can be your greatest ally in securing a deal.
Promise them the listing for both the sale and lease if you end up buying the property. This isn’t about courtesy; it’s about showing that you’re serious and that you value their role in the process.
When brokers trust you, they are more likely to advocate for your offer to the seller.
Sometimes I go even a step further. Once in a while, we find these rare finds that have the same hustle and the same values.
And we award them profit sharing upon stabilization, besides leasing commission.
2. Meet The Seller
Real estate is personal, and making it even more so can tilt the scales in your favor. Whisper to the broker that you need to meet the seller before signing the Purchase and Sale Agreement (PSA), even if it means flying across the country.
Face-to-face interactions build trust and give you a chance to understand the seller’s motivations better.
Then use every opportunity in the counteroffer step to meet the seller in person.
Do not bypass the broker.
At the meeting, get to know the seller; put in all effort to like each other. If it works, then it is very likely that the deal will be yours.
3. Why They’re Selling
Sellers usually have one of two main reasons for letting go of a property:
Property Challenges: Maybe the property is tough to manage, needs significant renovations, low occupancy, or has tenant issues. If this is the case, tailor your offer to address these pain points.
Financial Pressure: The seller might be under financial strain—perhaps their mortgage is expiring, cash flow isn’t covering the debt, or they need funds for another project. Recognizing this allows you to structure your offer in a way that is good for them.
4. Know Your Seller
Dig deep into understanding who the seller is.
What motivates them? What’s their personality like?
Find three key points where you can align with them. Use them to build a relationship.
5. Know the Property Inside and Out
Research every aspect of the property—its history, past renovations, tenant records, past sales, Costar records, sales history.
Call the municipality, talk to the Planning and Zoning Director and to the Fire Chief.
This knowledge gives you leverage and allows you to make an offer with more ammo.
6. Competition
Always ask if there are other buyers in the picture.
If the property is hot and the deal makes sense, don’t be afraid to meet the asking price.
Sometimes, a full-price offer is your best bet for beating the competition.
At the Letter of Intent (LOI) stage, I go with the optimistic scenario that the property is as good as the brokers paint in the offer memorandum.
Once the LOI is accepted and due diligence starts, we'll have another round of negotiations if any issues arise.
7. Due Diligence
From the Letter of Intent (LOI) to the close of Due Diligence (DD), keep the seller informed of any findings that negatively impact the property’s value.
This steady stream of information can help you justify your offer and potentially renegotiate the price.
8. Submit Multiple Offers
In a multiple-offer situation, present 2-3 different offers.
One a cash offer, while others should have seller financing terms.
Offering multiple options gives the seller flexibility and increases the likelihood that one of your offers will hit the mark.
9. Make a Strong Earnest Money Deposit (EMD)
If deal is super hot, don't be afraid to make 5%- 10% of EMD non refundable right away.
This move shows the seller you’re serious and ready to commit, giving them confidence in your offer.
This is how we do it. It's not rocket science.
Common sense and discipline.
Takeaways
In the end, winning in real estate isn’t just about numbers—it’s about people. It’s about building relationships, understanding motivations, and crafting offers that make the seller feel like you’re the best person to take their property forward. Play the game right, and the deal will be yours.
Be Well,
Saul!
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