How to Present an Offer and Get Consent | EREI 8

Unless you are presenting offers, deals don’t happen. And until those offers are getting accepted, then deals definitely aren’t happening. Matt tells you precisely how he presents his own offers and gets them accepted enough to result in two or three deals each month.

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Podcast Transcript
(Voice Over): Epic Real Estate Investing Podcast Episode 8. You’re about to meet a man that can show you how he took control of his life and financial future and how you can do the same. He’s never been on TV. He’s not a millionaire. He doesn’t know Donald Trump. He is a full time real estate investor, newly discovered author, and family man. He does not report to a boss.

He creates his own schedule and takes his family on a few vacations every year. He got started investing in real estate with almost no money and a really crummy credit score. And he’s going to show you exactly how he did it and how he continues to do it. You will have to work.

You will have to be responsible. However, laying the beach, sipping fruity drinks is a reasonable goal. Without further delay, your guru. Sorry. Your guide to a better life, the real estate investor, Matt Theriault.

Matt Theriault: Hello. And greetings from The Epic Real Estate Investing Podcast. The podcast that will show you how to create wealth through conventional and creative real estate investing so you’ll have the option to realistically retire in the next 10 years or less. And enjoy the good life while you’re still young enough to do so.

My name is Matt Theriault, author, full time real estate investor and family man. If this is your first time listening to the show. You want to do two things. One, go back and listen to episode one. Episode one is going to give you the gist of what the show is about and why it’s here.

I mean everything that we discussed is going to make a lot more sense if you do that. And two, download the Free Real Estate Investing Course on how to deals, no money required. And you can get at freerealestateinvesitngcourse.com.

It’s a step-by-step course of which I reveal everything that I do, everything that I say, everything that I use including the documents and contracts. Everything that you are going to need to invest in real estate using no money or credit. And that’s yours for free at freerealestateinvestingcourse.com.
[00:02:04]

Okay. Let’s waste no time. We will get right into it. Last episode, we learned how to determine whether property meets our criteria meaning if it’s in our area, if it’s in our price range. And whether it’s going to move us closer to our immediate goal of cash or cash flow.

We also learned as to why we want to deal directly with the decision maker and pursue opportunities of which the seller’s need to sell as opposed to wanting to sell or has an interest in selling. That took us through level one evaluation and halfway through level 2 evaluation.

In order for us to complete level 2 evaluation and put us in our first money making position, we covered the basics of evaluating a property so now what do we do with all of that information? How do we actually determine our initial opinion of value?

Well it’s going to take some practice and I’ll walk you through it verbally here. If you’d like to see the visuals as well, you may do so by downloading how to do deals, no money required at freerealestateinvestingcourse.com.

Again, I hope you understand that I’m not trying to over promote that. The reason I keep mentioning it is because there’s only so much that I can show you through my words. Some of the things I am explaining you might get and you’re actually need to see it to actually get it.

I created a video or multiple videos for just about everything that I’m discussing. All right. How do we actually determine our initial opinion of value? Well if you have access to the multiple listing service that will be your best source to access comparables.

You can get access to the MLS in a few different ways. First if you have a broker’s license. Second if you have a real estate sales person license of which you have hung with the broker. And some MLS company have what’s called affiliate membership of which you need a broker to endorse to that company or that board that host your multiple listing services.

There’s going to be a fee attached to that service. I don’t know. I’m not sure what it is around the country but in southern California around $300 a year. If you don’t have direct access you certainly want to get a cooperative and open-minded realtor on your team. They can get you access and in most cases if there’s a possibility of business in it for them then they’ll be more happy to do so.

Now if you don’t have access to the MLS, there are countless websites of which you can access basic comparable information. I use to really dislike this particular website but they’re making strides in becoming more user-friendly to investors. And that would be zillow.com but there are many to choose from and if you have a favorite just continue to use it.

Doesn’t matter too much at this point. Once you’ve located the 5 lowest comparables solds in the last 90 days or so, you can take those 5 sold prices to a website that I said I’ll help you determine an initial opinion of value. You can find that at epicanalyzer.com.

You’ll have 3 options. There will be one big button that reads “fix and flip.” A second big button that reads “buy and hold.” And a third that reads “multi-family.” For now, let’s just leave the multi-family button alone at least for this example.

So if the property you want to analyse is one you intend to wholesale or flip for cash. Click the fix and flip button. If the property is one that you want to use to create cash flow.

Click the buy and hold button. There are both relatively easy to use. In fact, they’re very easy to use. Just fill in the blanks then you hit calculate at the bottom of the page. And epicanalyzer.com will generate a suggested maximum offer for the subject property.

Now it is the end of the deal number. It’s not actual value. It’s simply a suggested maximum offer of which takes into account all of the expenses that you are going to incur and it takes into the account the profit or the amount of money that you’re going to put into your pocket.

And it creates what’s called a suggested maximum offer or you can also consider this your initial opinion of value. This is the maximum price of which you want to get under contract. That’s all that this number is.

Once you’ve entered all of your data and click calculate. If that suggested maximum offer number seems to be a reasonable number based off of the information you clicked from the seller interview. You’ll have a decision to make only if you completed level two evaluations at this point by the way.

Now you have a decision to make. If that suggested maximum offers number seems to be a reasonable number based off of the information you clicked from the seller interview, you have tow options. You can refer the deal or you can secure the deal.

Your first option is to refer the deal to another investor and receive what’s called a bodog fee. Now that’s investor talk for referral fee. I’ll be showing you how to create a buyer’s list a little later so you’ll always be in the position to easily refer the deal to another investor.

Typically you can expect to make anywhere from $250 to $1000 depending on the deal for your birdddog fee. This is your first opportunity to make some cash. And it requires absolutely no money out of your pocket to do so.

Now if you don’t have an investor list yet or you don’t have anybody interested and you followed all of these steps as I’ve described up to this point. Send me an email with the information directly from the epicanalyzer.com. You can send email with all of that information right from that website so send me that information from epicanalyzer.com.

And more times than not, you can go ahead and I’ll do the deal. I’ll pay you the birddog fee. Now there are no guarantees but if you follow the instructions up to this point, it shouldn’t much that of a problem.

Now although a $1,000 payday that might be acceptable to some. A few people get involved in real estate investing for that type of money. They want the bigger money that real estate investing can provide.

And in this course, I’ll show you how to do that but just know that this right here. This is your first opportunity to make some money. And sometimes people will actually turn this strategy into a business in itself. Finding deals and referring them to other investors. But if a birddog fee via referring the deal to another investor, I mean if that’s not your thing. I totally understand. It’s certainly not my thing either. So that takes us to our second option.

Your second option is to secure the deal, to present an offer to purchase and put the property under contract with the intent of assigning or wholesaling the property. And that takes us to the P of our Epic approach: present and get consent.

Now investors especially newer investors either stuck at this point because they never completed their real estate purchase agreement before and they fear the unknown. Or they don’t understand how they’re protected under the contract. And most tragically, they don’t understand the control and power they will acquire by putting the property under contract.

And how that positively impacts their negotiating position. Now before we go over putting together an offer to purchase real estate, I must disclose that I am not a lawyer. Okay?

I am not providing legal advice. I mean real estate law is not universal and it varies from state to state. Often times, greatly.

The information I’m about to share with you is how I conduct my business. And it’s presented in more of a theoretical nature in order to be as universally applicable as possible. So no warranties or guarantees are being offered. Please seek appropriate legal council before entering any real estate transaction.

Now, there are multiple places you can get purchase agreements. You can get very basic agreements from stationary stores like a staples or Office Max. But in my opinion, they tend to be a little too generic and vague for my comfort level.

But you know what, investors use them all the time. Or you can get purchase agreements from local board of realtors. But again, in my opinion, they tend to be stacked a little too deep with legal gobble goop that which can be really confusing and/or irrelevant as much as what is written there to protect real estate agents and their brokers.

Now additionally both of those sources for your purchase agreements will require a lot of hand writing on your part. Considering the amount of offers you will be writing, you’ll probably want to put a system in place that will increase your efficiency as well as maximize your organization.

So the best place to get your purchase agreements is from your own real estate certified attorney.
However if placing an attorney on retainer is out of your budget or just seems to be little over the top for you.

I mean each of every investor will have unique experiences and unique needs. The simplest place I found to create my purchase agreements of which are good and all 50 states through a service you find at epiccontracts.com.

There I can easily fill out the contract online and just print. Just fill in the blanks. I think it’s around $60 annually or $29 a month but the $60 annually allows you to complete as many purchase agreements, as you want within that year.

And you’ll access to contracts from multitude purposes but I typically only use their real estate contracts. I mean their real estate contracts are just so easy to use. I mean you just fill in the blanks.

If you ever have a question about a certain deal, there’s a little question mark icon next to each field to explain and offer assistance. I mean it’s really, really, really easy. And once you’re contract is complete and don’t forget your CYA clause, you’ll need to present your offer to the seller.

And by all means, insist on presenting the offer in person. I mean go out of your way to make this happen. It will be very easy to fax it or scan it or email it but resist all temptation. There’s so much room for misinterpretation in the written word. All of that hard work that you’ve done up to this point, it can be lost with a simple misunderstanding or misrepresentation of your offer.

I mean you want to be in the position to present and justify your offer as a fair one without accidentally introducing any objections or confrontation through miscommunication. But first to properly present an offer, I recommend presenting at a neutral location like a coffee shop or restaurant.

You see, by presenting an offer and conducting your negotiations at their place or yours. You know too many distractions are present of which can introduce unnecessary and sometimes flat out invisible hindrances and barriers.

And it can break up a deal and you have no idea why it broke up. So do what you can to meet at a neutral location. Second choice; present the offer at the property itself. You’ll want to position yourself on the same side of the seller you’re presenting. It means it’s not you versus the seller. It’s you and the seller versus the market in the market conditions.

In How to Deals, No Money Required, I videotaped a role-play for you of what that actually looks like. What that conversation looks like? Now, after you’ve presented the offer. There are three different possible scenarios. The seller can accept your offer or the seller can reject your offer or the seller can counter your offer.

If they accept then congratulations. You are in contract. Now if they reject your offer then you can either move on to the next deal or you can submit another offer.

If they counter your offer then you’ll want to counter back. This is where deals are lost by the way. Don’t make a mistake of rook investors. Don’t get emotional about deals. Don’t take counter offers personally. And don’t believe counter offers are the seller’s final position either.

You will counter back always. Even if you counter back with the exact same offer you originally presented. Always send a counter back. Never let the ball bounce twice on your court.
Keep countering back until you get a flat no or you get consent. Once you’re in contract, you have two options. You can now assign the contract to another investor of which command a much higher fee than our previous birddog fee.

Typically anywhere from $5,000 to $20,000 is a reasonable wholesale fee. It depends on the deal though. It depends on the area as well. I included the assignment paperwork on how to do deals, no money required. Everything that you’re going to need. Simply complete that paperwork. It’s really simple and just turns it into your escrow of choice and they’ll take it from there.

Your second option is to actually go for more, more money. And we will undercover the many areas of which you can put more money in your pocket. Now whether you intend to flip this property or hold on to it and we will do that on the next episode.

And we will start learning how the money you may or may not need to close is revealed. How it’s lying right under your nose and in most can’t even see it. Whether you need that money or not to close is relative but it is money, your money nonetheless.

Now until next time. And as a very wise man once said, actions speaks louder than words but not nearly as often. To your success, I am Matt Theriault. Living the dream.

(Music Playing)
(Voice Over): Thank you for spending this time with Matt Theriault and the Epic Real Estate Investing podcast. When you have time, stop by iTunes to leave your comments and let us know what you think of this show. And if you haven’t done so already, get started investing today by visiting FreeRealEstateInvestingCourse.com to access Matt’s free course on how to deals, no money required. Until next time. To your success, to your success, to your success. (Music fading)

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