Offer Accepted! The Quickest Deal We Ever Made
How we went from Spotting the Deal to Getting the Offer Accepted in less than 24 hours.
When working in a fast-paced market your speed of execution is what separates the professionals from the amateur investors. Ours was recently put to the test when we spotted a great property in a fantastic location at an amazing price. As we know our investment area very well, as soon as we saw the new property alert in our mailbox, we knew the asking price was set for selling quickly. We took the opportunity and we made the deal in less than 24 hours. We set a new company record for this one.
So how did we do it?
Know your numbers and area.
The property was going to be marketed at an open house at the weekend where we knew we would be fighting over it with every other Tom, Dick, and Harry with a high chance of losing out.
How did we know this? Doing research about the investment area and analysing past opportunities greatly help in assessing the market. From this consistent monitoring you create an instinctive feel for what is going to be a good deal or not. Having done our homework we could quickly assess the asking price and understand how quickly this would sell.
Having identified that this was a great opportunity we knew that we didn’t want to miss out.
2. Take action and be persistent.
After spotting the opportunity in the morning I was straight on the phone with the agents trying to convince them to let me view it. They refused, they wanted it wait till the open house set up for the coming weekend. Even though it has just been listed, they got a lot of interest already and wanted to organise the viewings in one go. Confident in our figures, we expressed that we could put an offer subject to viewing. They were still reluctant but we didn't give up and kept asking questions.
By asking the questions, we were looking at ways to try to understand how to approach the situation to convince the agent to work with us. We weren't discouraged about the refusal, instead we became more curious and want to know why this property was for sale.
3. Understand the seller's problem and provide the solution.
During the conversation, the agent mentioned the only reason the owner wanted to sell the property is that she is an old lady and no longer wants the hassle of paying the licensing and work required to get the property compliant. She didn't want the hassle of vacating the tenants and clearing the property to sell. We instantly offered that we are happy to sort out the licencing issues to get it compliant and keep on the existing tenants. This was a win-win for us as well, this also means that we get cash flow on day 1 and we will have time to plan the project ahead without worrying too much about the holding costs.
As soon as we mentioned that, the agent was convinced that we were the ideal buyer as we solve all the vendor's problem.
4. Maintain a good relationship with the Agent.
Luckily we have a good relationship with the agent (we have purchased a property from them before and they know us to be very active) so given that they know us they allowed me an exclusive viewing as the Branch Manager had not viewed the property himself yet and allowed me to tag along for his initial assessment after lunch.
Having strong and positive connections is absolutely beneficial for the business. It increases the chances of being presented with good opportunities as well as repaying them with other opportunities. As the property is currently managed by the same agent, our offer of keeping the existing tenants also appeals to the agent. Having such relationships is a win-win situation and ensures they are happy to work with us to get any issues sorted.
5. Speed Speed Speed! Have your offer documents always at the ready!
Happy to be approved for a private viewing, I turned up promptly and walked around the property with the Branch Manager and his colleague after which I told him that if I could put forward a strong offer would he take it off the market? He said providing we would give proof of funds by the end of the day he would recommend our offer to the vendor.
And so by the end of the day, our brilliant broker managed to get our finance in place for the purchase and we submitted our offer. The first thing the following morning we got the good news that our offer had been accepted. This has been the quickest deal we have ever made.
Some Advice
It is important to solidify the processes in your business and revise them regularly. This reduces the friction in getting a deal done so your speed of execution is as quick as possible meaning you focus on getting the deal done rather than the things you need to do it.We wouldn't have done this successfully in the first place if it weren't because of these factors above, which we consistently execute on a daily basis. There are hundreds of properties where we have done this before where we weren't so lucky, but practice makes perfect and when you get it right it certainly pays off.
Want to learn more tips? Send us a quick message or book a free consultation with us. We would love to assist you.