Are you a Real Estate Investor and ever wonder the question of: "Do I Still Make Offers Even If There Are Offers Higher Than Mine?"
From this video, you will quickly LEARN WHY it makes completes sense to submit offers on properties you are looking to wholesale and fix & flip EVEN IF there are higher offers than yours!
This video is a sneak peak of the Q&A Mentor Calls that take place with those in our Pro Wholesaler Program. The Q&A Mentor Calls take place every other week where all students in the program get to ask questions about the wholesaling process, contracts, specific deal questions, real estate negotiation, and any other questions regarding wholesaling and fixing & flipping real estate.
In case you enjoy reading, here's a transcription of the video:
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Would you make an offer even if there is an offer higher than what you would pay? Would you keep sending offers for what you think it's worth even if the realtor says there are other offers?
Yes, yes, yes, yes, yes. I'm so happy this question was asked.
So what will happen from time to time is if you're in a competitive market and especially if you're calling on lots of properties then there's gonna properties that have multiple offers on them and offers that are higher than yours. Now, here is what happens a lot of the times... And I've said it a million times. There's unsophisticated investors out there. They put offers on property, they're not properly trained like you, they don't know how to run comps, they don't even use sold properties for their comp analysis. They may use active properties on the market to justify their ARVs. And they don't find cash buyers to buy their wholesale deals and they fall out of the deal and back out of the contract.
Well, you know who this listing agent's going to go to in the next situation? They're going to go to YOU, the NEXT BEST cash offer. It may not be as high as the other one, but you actually follow through, and you say what you're going to do, and you submit an offer, even at a lower price then other higher offers but they've fallen out. Now your offer is in there. You're ready to rock. And you're able to work with this listing agent on that deal. So by all means, when there's other offers on properties, still submit your offer!
Probably about 40% of the deals I get, there have been other offers on the property, but the other buyers back out. They can't find a cash buyer, or maybe it's way too hairy of a deal for them. Well, you know who they call? They call me and say, "Alex, will you make this work?" And, I say, "Yup," and I follow the Pro Wholesaler process, I collect my wholesale fee, and I keep moving forward.
So that's super important, guys. Even if there's other higher offers on a property, it doesn't mean you've been beat to the punch. Still submit your offer. If the listing agent will work with you, beautiful. If not, this is when you use the agent who got you MLS access as your buyer's agent. And you just send them the offer terms, and then you sign the offer, and you send it to the agent. And now you're sticking to your word with the listing agent who you had a Discovery call with, you're sticking to the word with your buyer's agent that you said you're going to bring deals to, and then you make the deals work.
So that's extremely important. I want you guys to all realize that. Still submit offers even if there's other offers higher than yours on the property. And there's a direct correlation, guys, between the amount of Discovery calls you make and the amount of deals you get. And there's also a direct correlation between the amount of offers you send and the amount of deals you get. Alright? It's a numbers game.
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