Epic Real Estate Investing - Should I Leave a Purchase Contract or a Letter of Intent Behind? | 3rd Degree Thursday

Episode Date: December 4, 2014

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Hello and welcome to another episode of Third Degree Thursday, the show where I subject myself to you giving me the third degree. And today, by the way, I've been gone for a couple weeks, maybe you've noticed, I've been very sick. You can probably tell by my voice right now. I've been very sick. And if I didn't get on the microphone today to record this episode for you, probably another two weeks before you hear from me because I'm about to do a lot of traveling. Anyway, let's make this short and sweet. We're going to get right to the point. Today's question comes from John Emery and John Wright.

Hey, Matt, listen to your podcast all the time. I get how you say leaving a contract with a seller, even if they aren't going to sell now, can work. The question I have is you teach to do a letter of intent that can possibly have three options for the seller. Wouldn't a contract have only one option? Do you only leave with the seller than a contract for one of the options? Thank you, John. All righty. Great question, John.

And thank you for listening to the podcast, by the way. Thanks for the nice words. And I'll give you my answer right after this. Attention, attention. Shocking website reveals that shocking websites aren't really that shocking. All kidding aside, go to find motivated sellers ASAP.com to get the inside scoop on how the nation's most successful real estate investors really find their deeply discounted properties. Go to find motivated sellers ASAP.com. Deeper discounts, less secrets.

Find motivated sellers ASAP.com. Okay, so when I say always leave a contract with the same, seller, even if they aren't going to sell now. There's a little bit of semantics on my part that may be, you know, missing the mark for you. So I apologize if I've been unclear. When I say leave a contract, what I really mean is leave an offer. And that can be in the form of a purchase agreement, a formal contract, or it can be in the form of a three-option letter of intent. The idea is, or the real objective here is to just leave something in writing that states the price in terms of which you'd be willing to purchase that property for.

I like the three-option letter of intent the best. I think it can frequently create an opportunity where there wasn't one before. But at the very least, leave a purchase agreement. Nothing wrong with that, even if it is only with one option. And one thing that we've started to do is we've started to track all of the offers that we've left behind and we revisit them every four to six weeks and then provide the seller via mail with a market update and a revised offer. We've just started doing it, nothing to report as of yet, but in this shifting market, you know,

you're going to have to become a marketing star almost as much as a real estate investing star. You know, a big part of marketing is building relationships. And since you've already met with that seller or been on the phone with that seller, a relationship has been creative. Whether it's big or small, the seed has been planted. So now it's time to nurture and grow that relationship by providing valuable information. Become a person of value in that relationship. You know, that kind of approach works in every other business, and it works here too.

Those that can build, you know, relationships, they're going to come out the big winners. And why is that? Well, the biggest reason is because your competition isn't doing it. Always leave an offer behind, whether a one-option offer or a three-option offer, just leave something behind. And just by doing that, you're already miles ahead of your competition. All righty, that's it for today. I'll see you tomorrow for a brand-new episode.

of Financial Freedom Friday.