Basic Question
I am just starting in this investing thing and in reading different things I understand I should make a lot of offers each month. O.K. so my question is this is there some kind of form or something that exsits that I can make offers with? When I talk to a realator they want me to give them one thousand dollars in earnest money. Can't afford that so how do I make a lot of offers per month? Thanks.
Dont make offers through an agent. Go directly to a for sale by owner. Make him a verbal offer, if it is accepted then put it down on paper, have him/her sign it, then take it to an attorney or title company.
Simple enough???
Personally, I don't see the benefit of making lots of offers. You're better off making good (for you) offers on the right properties. If there are a lot of these sorts of properties, fine. But don't buy a crappy property just because you can.
Of course all of this also depends on what you're planning on doing with these properties. Flip, hold, rehab, etc. Each of these approaches requires a slighly different strategy.
Finally, realtors want $1,000 from you because they don't know you. If you sounds like you're not sure of yourself, people around you will worry. And if you're telling a realtor that you want to make lots of offers, they're smart enough to realize that you're not going to close on all these properties. So make offers only when you're serious, sound like you know what you're doing, and don't give anyone more than $100 earnest money.
Good luck.
If you're going to make offers through a realtor find ONE in the area to work with. Deal with him on all the properties you are intereste in in your area. He will split the commission of the other broker and so, from one point of view costs you nothing.
Now, make your offers including a earnest money deposit due "7 days after the seller's acceptance " or something like that (or on acceptance) in this way you don't have earnest money tied up on properties where your offer isn't going to be accepted anyway.
You may also be able to get your broker to accept a check for the em to be deposited only if the offer is accepted.
you should only be making offers on the properties you have plans for. If you make 10 offers and they all get accepted, are you able to handle this? You should be looking and expecting realistically.
Lori
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