Commercial Wholesale Training 1 Ed and Bob Diamond Module IV.

Commercial Wholesale Training1

Commercial Wholesale TrainingCommercial Wholesale TrainingEd and Bob Diamond

Module IV


Agenda for TodayAgenda for Today

Module IV - Make Offers that Stick

We will cover Chapters 1 Through 4 of Module IV


Chapter One - I Found a Chapter One - I Found a Property I Like, Now What? Property I Like, Now What? Run the Question Checklist in Chapter 1

– Is the deal still available? – Does it match buyers I have or buyers I can

get?– Did you run the numbers - pro-forma or actual– Other questions on the list are for when you

are buying for yourself


Contacting the Agent or Owner Contacting the Agent or Owner

Use the script and let them know you want to take action

Talk in terms of making an offerOwners and agents are similar except you

get the ball rolling by having the paperwork


Chapter 2 How Much to Offer Chapter 2 How Much to Offer

• Get some comparable sales using Zillow, MLS or other resource

• Calculate the NOI and cash flows and get the CAP Rate from a local broker

• Remember you are doing Due Diligence so you can renegotiate later if necessary

• If you have buyers make sure the offer will work for them with a profit built in for you


Chapter 2 Cont’d. Chapter 2 Cont’d.

• Expect counter-offers• Start below where you want to end up• Enjoy the process and do not get too

attached• Major commercial brokers have

occupancy rate studies, CAP rate studies and other info for you on the market


Chapter 3 - Making Offers Like a Chapter 3 - Making Offers Like a Pro Pro • Start with or a non-binding option• Seller can get out of a non-binding option

but you have a lot of power• Non-binding options are easy to pitch to

Sellers and perfect for wholesaling• No deposit because it is not binding


Chapter 3 - Cont’d.Chapter 3 - Cont’d.

• Often Sellers stop marketing once you have the property under non-binding option

• Look at the list of items to be in a sales contract - great list for when you are a principal buyer

• The info about offers, LOIs etc. in the book is perfect when you are a principal


Chapter 3 - Cont’d.Chapter 3 - Cont’d.

• If you have a live buyer and know what they need in an agreement of sale you can draw it up and enter into it with the Seller

• Have the buyer put up the deposit with the escrow agent on the agreement of sale

• Have the buyer sign the NCND before telling them about the property


Chapter 4 Counter-OffersChapter 4 Counter-Offers

• Just revise the Option or if you have a buyer go in with their terms and an agreement of sale

• Expect counter-offers


Next ClassNext Class

• Module 5 - Stealth negotiating, minimizing closing costs and getting cash back at closing

Commercial Wholesale Training 1 Ed and Bob Diamond Module IV.

Documents

Transcript of Commercial Wholesale Training 1 Ed and Bob Diamond Module IV.