What Comes First? Recipe (strategy) Ingredients (tools) Utensils and technique (tactics)
Do you need all of them? Possessing one of these things in abundance can set you up for success You must be willing to share your success with others You must be willing to act EVERY DAY You must expect your fair share
The Offer (mix up the batter) Combine your tools, tactics and strategy in a mixing bowl You can use any/all that you want but you MUST have all three This will result in the OFFER Accepted? Move to the oven and watch it bake Rejected? Back to the kitchen to make another offer Countered? More icing, less icing, different flavor, more layers
Ugly fourplex, found with a letter to absentee owners Rents = 2700 Expenses = -810 (30%) Before Debt = 1890 Debt service = 1082 (piti) Net rents = $808 Offer = $128,000 (owed) Down = ZERO Repairs = $14,000 Term = 26 years What did the seller want? Relief!
BACK into your offers What is your exit strategy? It WILL take longer than you think Are you looking for PRICE? Are you looking for monthly CASH flow? Who is your target buyer/tenant?
“Black hole” out of State owner Rents = 2000 Expenses = 600 (30%) Before debt = 1600 Debt service = 782 (piti) Net rents = $818 Offer $144,000 (owed) Down = $14,400 (10%) Repairs = $2400 Term = 25 years What did the seller want? OUT!
An offer a day This is your discovery process It can be done on a single page You can write them and stick them in a drawer You cannot eat cake unless you mix the batter
Will you do it? I don’t have any time I don’t have the right form I don’t know enough I don’t have any money