When I’m working with new investors a lot of them tell me, “Jason, I sent out 100 offers last month to people who were motivated, but I didn’t get one deal, what am I doing wrong?”
Well… the most important thing is that the sellers are actually motivated. If a seller isn’t motivated then it’s pointless to send them an offer on their property. But let’s assume that people are really sending offers to sellers who actually want to sell.
The next thing I tell these new investors is “show me your offer sheet.”
Far too many investors have no idea how to properly put together an offer to a seller. First of all, the offer must be clear and easy to understand. I think the average American reads at a 7th grade level and if the offer sounds like a lawyer wrote it, you’ll lose them.
Next, you have to remember that an offer should contain two options. Never ever send an offer with just one option because then it’s easy to say no. If you give people two options then you get to say to them, “Mr. Seller, would you prefer to choose option A or option B for selling your house.”
What options do you offer? Always a low-ball cash offer and then either a subject-to offer or a lease option offer. And if you want to do a subject-to, then make the low-ball offer so ridiculous that you know they’ll choose the sub-2. (Lead the seller down the path you want them to take.)
So let’s say a new investor has put together a good offer and emailed it to a seller.
Well, unfortunately that’s where most investors stop and it’s no wonder they don’t get deals. After you have sent the seller an offer you MUST follow up with them.
Pick up the telephone and say “Mr. Seller, I emailed you the offer for your property this morning and I just wanted to see what questions I could answer for you.” This follow up will usually close the deal, where if you hadn’t followed up nothing would have happened.
You see, the follow up will allow you to answer any questions the seller has, it will allow you to overcome all of their objections and it will allow you to explain anything that they didn’t understand.
In truth, if you don’t follow up then you might as well not make an offer in the first place and you might as well get out of this business, because you’re wasting your time without the follow up.
Also, even if you follow up and you’re not able to close the deal, then follow up with a yellow letter or phone call in 30 days.
Time always increases motivation. One time it took me 8 months worth of follow ups before I got a deal to close, but it was certainly worth it.
The bottom-line is this: Make simple to understand offers… give them two options to choose from… and follow up no matter how long it takes to close the deal.