Phase Six
Buying Investment Property
Make it Official

Buying investment property can be the most significant event in your entire financial future. 98% of those considered wealthy, in the USA, have achieved this through real estate investing.

You are now about to join this 98%.

Let's make it official.

Begin writing contracts on the 3 properties with the best decisive figures. The decisive figures are the prices you will offer.

If the seller's asking price is below your decisive figure, immediately offer that asking price, for all cash at closing. Other investors will try to haggle this excellent price lower. Be sure they lose this deal to you, by quickly offering all cash for the full asking price....You research told you so.

Otherwise offer your decisive figure as your purchase price. Many buying investment property will offer lower than their decisive figure, since it is the maximum they will pay for a property. It gives them room to haggle with the seller, if the seller counters with a higher offer.

I disagree with this strategy. It will waste time and hurt your credibility in the long run, if you are trying to develop long term relationships.

I offer my best price and stick with it, no matter how often the seller counters. It is very important that those I deal with understand that I do not waste time nor play games. When they see my offers they know it is my best offer and must decide if they can accept it or not. They also have no doubt I will quickly pay all cash at closing.

Once you begin haggling over price, your offers will never be taken seriously. It will always be viewed as "negotiable" and the back and forth games will begin. This is not something I want to continually deal with as I am buying investment property.

Write your contracts for all cash at closing, at your price. Give the seller 3 days to accept your offer.

If you do not receive an accepted offer within 3 days, go back to your list and take the next 5 best prospects from Phase Four and repeat the process in Phase Five. Do this until you get that first accepted offer.

It is vital that you stick with this method of determining your purchase price. It is better to never buy a property, then to pay too much. Paying too much will ruin you financially. Again. It is not buying investment property....It is buying investment property right. That will get you wealthy very fast.

You will notice that some sellers from your first groups of offers will eventually contact you to pursue your purchase price. They will have gotten better offers which will have fallen through. They will realize it is better to sell their property, at a lower price and move on.

From that time on, your contracts will command a certain amount of respect and your sellers will factor your ability to close in their system of selling their inventory.

For example: selling 2 properties with you in 2 weeks, may be more profitable than selling one, at a higher selling price, in 5 weeks with someone else. This happens to me all the time.

Once you receive an accepted offer, submit it to 3 contractors for bidding. Click here to review my lesson on working with contractors in Pt 4 - Fixer Uppers.

That's it.


From Buying Investment Property back to Investing In Real Estate.