Are you ready to make your first offer on a real estate property? Join us on our 7-day challenge to submitting your first offer! We understand it can be scary and you may feel like you don't have the tools, resources, and knowledge to make it happen. What if I told you you're wrong? The only thing holding you back is yourself - taking massive action is the first step to reaching your goals. You're first offer might not become a deal but it will be successful in providing you insight, momentum, and opportunity.
Day 1: Dial in Your Mindset & Define Your Market
Take out a pen and paper and write down you're answers to the following questions: Why do I want to own real estate? How will owning real estate impact/change my life? Where do I want to own real estate and why? What is my purpose and my WHY for creating wealth through real estate? What strategy do you want to focus on, do you want to fix & flip, buy & hold, or wholesale?
Day 2: Determine Your Budget & Location
Figure out what market you want to play the real estate game in - it could be your local town, growing cities, or your favorite vacation destination. Once you hone in on the market you want to buy in, research it heavily. What are the real estate and economic trends? Is it growing in population and booming with local businesses? What are the value-add opportunities for living there? Based on your research, you can determine your budget for your first real estate offer. Make it realistic, consider your financing options and what you can afford.
Day 3: Find Potential Properties
Start sourcing potential properties that fit within your budget, market, and strategy. You can use online resources like Zillow or Redfin to find on-market listings in your desired area. I recommend calling local real estate agents and work to build rapport with them. They get a lot more business by working with investors so you can provide each other mutual benefits once a connection is established. They may even have off-market opportunities available to offer you at a negotiable discounted rate.
Day 4: Vet the Property
Schedule in-person or virtual visits to tour the properties you're interested in. Take notes on the condition of the property and any repairs that may be needed. Factors to consider include: the surrounding properties and their comparable prices, distance to local businesses, walkability, and nearby schools. Confirm your strategy (fix & flip, buy & hold, or wholesale) will align with the property.
If you’re fix & flipping - have other homes in the area been updated, if so what are they selling at?
If buy & hold - what makes this area enticing for rental properties - what is the demand and comparables of other rentals nearby?
If wholesale - do you have an investor/buyer lined up to buy the property in the area once it’s under contract?
Day 5: Understand the Seller
Research the seller to gain insight into their motivations for selling. This can help you determine the best negotiating strategy. If working with an agent, offer your partnership as an investor as an asset in the deal. You can also negotiate through the agent to provide the best terms for the seller of the property. Remember, price is not always a seller's top priority or incentive for selling a home. You can look into factors like distressed properties, foreclosure, and personal life events as motivators.
Day 6: Craft Your Offer
Once you've honed in on the property that fits your criteria, craft a compelling offer that takes into account the seller's motivations and your price point given the current market conditions. Consult with a real estate agent or attorney if needed.
Day 7: Submit Your Offer
Submit your offer to the seller or their agent. If working directly with the seller, you may need to consult with a realtor or investor to get an offer template that will work for your deal. When working with an agent's offer template be sure to have other experienced investors look over it beforehand. Be prepared to negotiate and make adjustments to your offer based on their response.
Now that you have all the steps to submit your first offer, it's time to put them into action! It's important that you hold yourself accountable in this process and make it happen. These steps are only valuable if you put them into motion. To hold yourself accountable these next 7 days, here are some steps you can take:
- Post a daily update on social media about your progress
- Find a trusted friend and let them know your progress, allowing them to check in on you when you need it
- Track progress for yourself in a journal
Send us a DM on social media @IndarHawaii once you've completed your 7-day challenge! We're excited to see you close deals.