Hesel Media's Jesse Bush 4 Steps to Making Offers in Real Estate

In a recent masterclass hosted by Hesel Media, Coach Jesse Bush shared his insights on effectively making offers in real estate. This session was packed with actionable advice for real estate investors looking to find motivated sellers and close more deals. Here’s a detailed recap of Jesse’s four essential steps to making offers.

Step 1: What is the importance of knowing your market?

Importance of Market Knowledge

Jesse emphasizes the importance of understanding your local market. Knowing the average prices, property conditions, and trends in your target area is crucial for making informed offers. This knowledge allows you to estimate property values quickly and accurately, which is essential when negotiating with sellers.

How can daily practice build market knowledge?

To build market knowledge, Jesse recommends spending 20 minutes a day researching your local market. Check listings on platforms like Zillow and the MLS. Pay attention to new listings, pending sales, and sold properties. This routine helps you stay updated and refine your pricing strategies.

1. Daily Market Research: Spend a few minutes each day checking new listings, pending sales, and sold properties in your target area. This helps you stay updated with the market trends and pricing.
2. Use Online Tools: Utilize platforms like Zillow, Realtor.com, and the MLS to get a sense of the current market conditions.
3. Network with Local Experts: Engage with local real estate agents and other investors to gain insights and validate your findings.

Can you provide an example of using market knowledge effectively?

Jesse shared a personal example where he noticed a house listed for $200,000 that was pending sale. Knowing that he had sold a similar house in the same area for $56,000 two years earlier, he quickly updated his property valuations, which helped him make more accurate offers on his current projects.

Step 2: How can you make offers boldly?

Fast and Loose Approach

Jesse advocates for making offers quickly and confidently. Instead of getting bogged down in details, aim to make an offer during the first conversation with the seller. This approach keeps the momentum going and shows the seller that you’re serious.

Why should you make low offers with justification?

Don’t be afraid to make low offers. Jesse advises that if your initial offer isn’t almost embarrassingly low, you’re probably offering too much. The goal is to secure properties at the lowest possible price to maximize your profit margins.

1. Initial Low Offer: Always start with a low offer. This sets the stage for negotiations and leaves room for adjustments if necessary.
2. Justify Your Offer: Provide clear reasons for your low offer, such as necessary repairs, market conditions, or other factors. This helps the seller understand your perspective.
3. Be Prepared to Negotiate: Understand that the initial offer is just a starting point. Be ready to adjust based on the seller’s response.

Can you share an example of making a successful low offer?

Jesse shared a story where he offered significantly less than his competitors but justified it by offering additional services, such as handling probate issues and providing legal support. His willingness to listen and offer comprehensive solutions helped him secure the deal at a much lower price.

Step 3: Why is it important to get familiar with your contracts?

Confidence in Paperwork

Understanding your contracts inside and out is essential. Jesse suggests practicing reading and explaining your contracts multiple times until you can do it confidently. This knowledge allows you to walk sellers through the agreement smoothly and address any concerns they might have.

1. Practice Reading Contracts: Regularly read through your contracts to familiarize yourself with the terms and conditions. This builds your confidence and ensures you can explain them clearly.
2. Explain Key Points: Highlight the essential aspects of the contract to the seller, such as the sale price, earnest money deposit, and any contingencies.
3. Address Concerns: Be prepared to answer any questions the seller might have. A thorough understanding of the contract helps you handle objections effectively.

How do you conduct a contract walkthrough?

During the masterclass, Jesse demonstrated how to walk a seller through an agreement of sale. He highlighted key points such as the sale price, earnest money deposit, and terms of sale, ensuring that the seller understood every aspect of the contract. This thorough explanation builds trust and reduces the likelihood of misunderstandings.

Step 4: When is the best time to present an offer?

Timing is Key

When negotiating, timing is crucial. Jesse advises making your offer when the seller is most engaged and emotionally invested in the conversation. This often happens after you’ve built rapport through a long, friendly chat.

How can you keep the momentum going?

Avoid scheduling a follow-up call to make your offer. Instead, present your offer during the initial conversation. This approach maintains the emotional connection and increases the likelihood of the seller accepting your offer.

1. Build Rapport: Spend time getting to know the seller and understanding their needs. This helps establish trust and makes them more receptive to your offer.
2. Present Offer During Conversation: Rather than scheduling a follow-up call, present your offer during the initial discussion. This keeps the momentum and emotional connection strong.
3. Strike While the Iron is Hot: Make your offer when the seller is most engaged and emotionally invested. This increases the likelihood of acceptance.

What’s an example of striking while the iron is hot?

Jesse shared a story where he built rapport with a seller over a lengthy conversation. By the end of the call, the seller was comfortable and open, making it the perfect time to present an offer. This strategy led to a successful deal with a significant profit margin.

Additional Tips and Strategies

How can technology help in making offers?

Jesse highlighted the importance of using tools like PropStream and Zillow to comp properties on the fly. Being able to pull up property values and recent sales data quickly can make a huge difference when negotiating with sellers.

1. Utilize Comping Tools: Use tools like PropStream and Zillow to quickly compare properties and get an idea of their value.
2. Real-Time Data Access: Having real-time access to property data allows you to make informed decisions and adjust your offers accordingly.
3. Efficiency in Negotiations: Being able to provide accurate information on the spot helps in making compelling offers and negotiating effectively.

What are creative financing solutions for sellers?

When dealing with sellers who have specific financial needs, consider offering creative financing solutions. For instance, Jesse suggested structuring a deal with a combination of an initial payment and monthly installments to meet a seller’s needs while staying within your budget.

1. Initial Payment: Offer a lump sum payment to cover immediate needs, such as paying off mortgages or purchasing a new property.
2. Monthly Installments: Structure the remaining payment as monthly installments, providing the seller with a steady income stream.
3. Flexible Terms: Be open to negotiating the terms to find a solution that works for both parties, ensuring a win-win situation.

How do you handle probate properties?

For properties in probate, Jesse recommended working closely with a real estate attorney to handle the legal aspects. This approach not only helps you secure the deal but also provides valuable assistance to sellers who might be overwhelmed by the probate process.

1. Partner with a Real Estate Attorney: Work with an attorney experienced in probate cases to handle the legal complexities.
2. Provide Comprehensive Solutions: Offer to manage the probate process for the seller, including filing necessary documents and dealing with legal requirements.
3. Build Trust: Assisting with probate issues can build trust with the seller, making them more likely to accept your offer.

Frequently Asked Questions (FAQs)

1. What is the best way to find motivated sellers?

Motivated sellers can be found through various methods such as direct mail campaigns, online ads, networking, and leveraging lead generation services like Hesel Media.

2. How do I estimate repair costs for a property?

Estimate repair costs by conducting a thorough inspection of the property, consulting with contractors, and using online tools to get average repair cost estimates for specific tasks.

3. Should I always make a low initial offer?

While making a low initial offer can be beneficial, it’s important to justify your offer with clear reasons and be prepared for negotiations. The goal is to find a win-win situation for both parties.

4. How do I build rapport with a seller?

Build rapport by actively listening, showing empathy, and addressing the seller's needs and concerns. Personalize your approach and establish a connection based on trust and understanding.

5. What should I do if a seller rejects my offer?

If a seller rejects your offer, try to understand their objections and see if there's room for negotiation. Sometimes, offering additional services or creative financing options can help bridge the gap.

Conclusion

Jesse Bush’s masterclass provided invaluable insights into making effective offers in real estate. By knowing your market, making bold offers, being familiar with your contracts

For more advanced strategies and personalized coaching, consider joining Steve Trang’s Real Estate Disruptors sales training for just $97/month. Sign up here and take your real estate business to the next level.

Need more help? Visit Hesel Media for expert marketing and lead generation services, and check out Remote Latinos for top-notch virtual assistant support tailored for real estate professionals.

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