One of the most common misconceptions amongst new investors is that it is easy to get the property you want. The idea of getting into a bidding war and walking away with the property may sound exciting, but it is far from easy. There is a lot of work and preparation that goes into every transaction. It is much more common to sit down with a homeowner and discuss how you can help them, only to have your initial offer rejected. Many investors will follow up until they feel they have reached a dead end. It is those investors who continue to follow up, even when it appears a deal is not likely, that will end up getting the deals. While investing in real estate, persistence is a game changer.
More than three quarters of all deals are made after the fifth contact. This could happen over a period of many months. To make these deals relevant, you need not only organization, but remain persistent. The idea of getting your offers rejected can cause feelings of anger and disappointment. The key is not to take these personally and to try to put yourself in the seller’s shoes. Things can change quite drastically in just a week or two, especially if you are dealing with a distressed property owner. An offer you made just a few weeks earlier might not be applicable by the time you follow up. If you don’t see the deal through until there is an accepted offer, you never know what you will find.
There really isn’t much that separates one investor from the next. Over the course of a year, there will be at least a few deals that come down to strictly how and when you follow up. If a homeowner is distressed and needs to sell, they are going to sell to you or to someone else eventually. If your initial offer is rejected or completely ignored, there is a natural reaction to forget the deal and move on. Instead of thinking like this, try to look at the deal from another direction. What was it about the deal that didn’t warrant a response? In most cases, it will be the price, but it could also be the contract, contingencies or the closing dates. Reach out to the seller and try to find out what the issues were and what their motivation is. If you don’t follow up, you will often miss golden opportunities to get deals.
With every offer you make, you should pursue it until there is a signed contract in place. It is not uncommon for a property you made an offer on to still be unsold over six months later. The reality is that these are the best properties to pursue because of the lack of competition. With every offer you make and attempt to reach out to, you need to realize you are also establishing a relationship. In many cases, they will sell to whoever they have the best communication with or can offer small incentives in the sale. It is little things like this that can help you get these difficult deals done.
There are deals to be had if you have the persistence to get them. Knowing how and when to follow up can make all the difference in real estate investing.
