How to present multiple offers in real estate

What is up, everybody? We're live right here with Hayes Knows the Ways and Real Estate Nate. How you guys— how you doing, Hayes? I'm doing well. Thank you, brother. Another reason why we're talking about where he's at is because, you know, we're on the batch leads call right now, right? This is the call we do every week. We show people how to use batch leads, how it helps us in our business. And my man is in a hospital and he's still willing to do the calls. I mean, that's freaking dedication, brother.

Just out here hanging out. I mean, you can get it done anywhere, any, any, any type of way, ladies and gentlemen. So don't let the truth define you, you know?

So you're telling me you're doing deals and you, you're using batch leads from a hospital room? I mean, you can do it anywhere.

You can do it anywhere. I mean, as long as your mind's right, which occasionally sometimes it hasn't been right this week, but as long as you're, you're, you're crystal clear, you know, and you got the great data. Sorry, I don't have my batch leads hat today, but yeah, you're good data. You can still find the deals from your, from your bottom in a hospital bed.

So I love it, man. Well, prayers, like I said, go out to you. And what we're going to do today, guys, is we're going to go over how to make, how to present a creative finance offer. Again, this call is sponsored by Batch Leads. So if you don't have it, give it a shot. 7-day free trial in the description. Another thing, guys, is I, you know, I want to show you guys this. If you, um, have Batch Leads or you thought about getting Batch Leads, but you, uh, maybe you tried it and you didn't know how to use it, Today we're doing, right after this, we're doing a Batch Leads Masterclass so we can show you exactly how to use batch leads to text, you know, call.

Amazing.

All that. So I'll give you guys the link right here. It's on my Facebook group. It's pretty much everywhere on my social media. All you have to do is register and you'll get a link for the Batch Leads Masterclass. It's in about 30 minutes, but we wanted to jump on here and do this batch leads call really quick. So I'm going to throw it in here in the description, in the comment box. And if you guys are watching this live, yeah, register please, because like I said, we're going to show you exactly how to use Batch to, to make money, to get deals, find motivated sellers. Because I run a lot of polls, Sean, and, you know, a lot of the polls that most wholesalers are facing, most investors, is they can't— they don't know how to find leads, right? They don't know how to find good deals. So Batch is basically a software that lets you pull lists and reach out to those people. So thank you, Batch. Guys, if you don't know how to make offers to sellers and you struggle knowing like the right way to do it, that's why I wanted to kind of do on this call. Usually we comp properties and show you how to use Batch, but this one I'm going to show you how to execute making an offer. Okay. And I was going to use Sean as a— as we roleplay earlier this day. I'm in communication with the seller right now about their, their 8-plex that we're interested in buying. I'm interested in buying, and I made an offer earlier. I didn't record it, and I didn't really, you know, use— I guess I didn't record it so I could show you guys. So I'm basically going to show you guys how I made the offer, what paperwork I used, what you guys need to do to make a seller financing offer subject to, all this creative financing stuff. So I'm going to give you everything you need. So first off, guys, you need a letter of intent. Okay, you need a— you, you don't always want to write up your offer in a contract and send it over because they might not accept it and it might be a waste of your time at all. You need to present multiple options to sellers sometimes and then present it in a letter of intent, which you guys can find this letter of intent on my Facebook group, Wholesaling Real Estate Mastermind. If you type it in, if you just go to files, here's the letter of intent template that I use. You guys can go grab it for absolutely free. I'm just giving it out so you guys can make offers the right way, present offers to look credible and look legit. So the first thing you need is the letter of intent. Okay? Now, I took this information. I knew I was going to offer. I crunched the numbers in my calculator to see what it was going to cash flow after I raised the rents. And I ran the numbers on how much they would make if they took my financing offer. So next thing you need on top of letter and intent, guys, is a calculator, a way to break down the numbers. So this is a calculator we've exclusively built. We've, you know, we've added from other calculators and other people we've used, and we've made our own, made, made some stuff in here. So you got the wholesale, that's going to teach you like how to run the numbers, hard money, when a flipper flips it, you know, you'd calculate everything for a wholesale deal, a flip evaluation. If you want to BRRRR it, if you want to keep it and bury it. Novation retail buyer program, or whatever you want to call it. Shout out to Corey. Um, but, uh, next thing is amortization. That— so you basically need to know, uh, you need an amortization schedule so you can know what they would make, um, you know, on interest if they finance you, so you can make your, uh, offer more appealing. And I did a call— I did, uh, a video yesterday of how to actually run through the numbers, but today is going to be on how to present the offer. That's what I kind of wanted to do today, Sean, is just I've already made the offer.

Yeah, I heard you. I heard you.

People step by step on what they need to do to make a legit offer. Absolutely. Number one, do you think it's a smart idea, anyone watching, or you, Sean, just to send the letter of intent and just hope they understand the, the terms and, you know, the offer you're making? Do you think that's a smart idea? Um, no.

Wow, that's a terrible idea. Just missing out on a lot of opportunity to build the rapport, make sure that there's clarity. And really understand that, you know, hey, this is a legitimate offer with legitimate potential for you to make more money.

Yeah. And what are the things that can happen bad if you just send an offer without being able to explain it or you don't even like verify that they got it?

That one right there, that did they get it? Did they see it? You know, of course, do they understand it? And, you know, again, like, Those are the top two, you know?

Yeah. Yeah, for sure. Yeah. Did they get it? Did they understand it? That's pretty much it. I mean, you also don't want them to get it. And then if they're talking to multiple investors, just use yours as ammo. You want to explain it, verify that, you know, you're in the running. You know, you want to, you want to make sure they understand. So, Sean, let's do a freaking role play. You ready, brother?

Yes, sir.

All right. So here goes. Step one, make the, make the, the letter of intent, run the numbers. And, you know, call the seller.

Bring, bring, bring. This is Sean.

Sean, how you doing? It's Nathan Payne.

What can I help you with?

Hey, you know how we've been talking about your, your Aplex back and forth? Do you have a couple minutes? Oh, I can go over my offer with you.

Yeah, absolutely.

No, and I could have just emailed it to you and, you know, hope you understood it, but I wanted to kind of run through the offers because it's just not just one offer. I had a couple different options for you, so I wanted to call and run them through with you. Do you have some— you have about 5 or 10 minutes? We can do that right now.

Yeah, actually, that'd be perfect.

Cool, cool. Are you by your computer or your phone by chance where you can pull up an email?

Actually, yes, I am. I have a— let me pull it up right now.

Okay, great. So what I'm gonna do right now is, you know, pull up your email. I'm gonna send this off to you. So, first off, I just want to let you know that, you know, I presented the first option as a cash offer. We've already discussed it and you told me, you know, you're probably not sure if you're feeling 100% confident comfortable or confident taking that offer. So I want to let you know, if we do decide to go with one of the options on seller financing, that we are going to take over all the taxes, insurance, repairs, and utilities. So you don't have to worry about any of that. Okay, here's some options. All right, option 1 is, uh, you know, the purchase price of $1.1 million for the apex. And we talked about it before, you— it's not a bad offer, but you're hoping maybe you could get a little bit more. So that's why I'm presenting different options to you. So Option 2, I know it's not a ton more, more money than the $1.1 up front. The purchase price that we're offering on Option 2 is just about $25,000 more. But, you know, we're asking— we're willing to pay 4% interest. So you're going to make some interest over 12 months. It's a 12-month period. So your monthly payments are going to be up $4,000, almost $5,000 a month. And then over the year, you're going to make about $60,000. And then once we pay you out in 12 months, that's going to be your payoff. As you can— as you're looking at it, you're following along, right, on Option 2?

Sort of. I'm looking at it.

So the cool thing about this is you know, when I make you my purchase price offer, you're probably thinking I'm only getting $25,000, right, more than the cash offer. But you're actually— because you're, you're willing to finance us and just wait a year, um, to, to get paid out— I mean, you're still getting money down, so there's— we got some skin in the game, and you're making $66,000 more. That's just for 12 months, right? And the way this works, Sean, is the more time you give us, the more money we can pay, right? Because we're able to cash flow a little bit more We're hoping interest rates probably go lower and, you know, property values go up. Option 3 is, you know, of course you give us more time. 3 instead of 12 months, we go 3 years, same interest rate, down payment 10%. Yeah, it is a long time, but look how much extra you make. I mean, in 3 years, instead of, you know, making $66,000 in 12 months, in 36 months, 3 years, you make almost $200,000 more in interest by financing us, right? So your total that you're getting is for the duplex— I mean, sorry, the Aplex— instead of 1.1, you know, for a cash offer, you're getting close to 1.3, right? Option 4, the last one, which, you know, I, you know, is best for us and, you know, hopefully it's best for you. We're willing to pay 1.25 for the property. I'll increase the down from 10% to 15%, and I'll increase the interest by, you know, a quarter of a point, a quarter percent or whatever you call that. Wow. For 60 months. And I know that's a long time and you're wanting short term, but if you give us this, you're going to make close to $400,000 extra on top than if you would have accepted the cash offer. And on top of that, you know, you're getting close to 1.5 for the place instead of 1.1 for cash. The thing is, I mean, it's common sense. Give us more time, we'll pay more. Stress, you make more money, and, you know, we're willing to put down more. We're willing to do more and give you more because, you know, the longer is better for us too. So trying to create a win-win situation, and I feel like, you know, the options that have been presented, like, allow you to get more money like you've been wanting. All right, man, so that was it. That's how we make offers. You present an offer, you explain what you're doing, you, you kind of try to go over deal killers, and you go from there. But, uh, I gotta hop off, man. I got the, the Batch Leads Masterclass. Are you going to be on there too, Sean? Like, might as well just be in be in the crowd or whatever.

Yeah, let's go.

All right, brother.

See you guys.

Hey, Batch Leads call. I hope this helped you guys out to learn how to present offers, especially seller finance terms offers. And, uh, yeah, Batch Leads all the way. Let's go.