Re: JPiper and any seasoned investors - Please read - Posted by Ed Garcia
Posted by Ed Garcia on May 28, 1999 at 10:51:44:
Low ball is the way to go.
No matter what ever you do with this deal, you start off with a low ball.
A lot of investors feel that if you start off with a low ball, you insult the
buyer, no such thing. My concern about the buyer, is the same as theirs
is about me, Were both out to make our best deal.
A low ball can blow their mind. It can make them mad, up set, but one
thing is for sure. It will giggle their thinking. It will make them start to
adjust their thinking to get closer to where your coming from.
Justification to your Realtor ? Your an investor.
You tell them that because your an investor you can?t pay top dollar
because you need room to get out of it yourself, but that your good for
a fast close. Remember the stage is set, you have already told us that you
have a motivated seller.
Chances are, Piper is right about the loan. But a low ball offer will shake
the monkey out of the tree. It will make the Realtor come back and tell
you what the loan amount is, to demonstrate how ridiculous your offer is,
and why the seller can?t except your offer.
That?s exactly what I wanted to do.
Normally Realtors don?t like to disclose loan information. They know
that you?ll target the loan amount when making your offer.
Jim, like the next guy, I work each deal differently, depending on the
circumstances. But one thing is for sure. When I?m not quite sure where
to start, I always start off with a low ball. Usually I?ll get more of a
reaction from the Realtors involved.
Most Realtor are order takers, and when they come up against a
professional buyer, they fall apart. They?ll make remarks like, I think
this offer is a waste of time. There is no way the seller would accept
You see Jim, a Realtors mentality is geared towards retail sales.
Their job is to sell full price, and that?s how they see the market.
My answer when they make this statement, is, I don?t want to waste your
time. I have another broker in mind that will have no problem making
the offer for me. I?ve done a lot of business with that broker.
Jim, at that point you can watch them cringe, they?ll cave in a little, and
then back up and regroup with a new attitude. If not, I blow them out of
So you can see how much fun you can have when your in control.
A low ball offer also sets the stage for a seller carry back, and a lease-option.
The seller sees that you are willing to pay more with terms.
Now go make your offer??.