There is no perfect property. Every apartment-investing opportunity is different. Each one is unique cluster of imperfections. Your objective should be to close on the available property with the best set of fixable imperfections. You’re most likely to succeed when you’re clear about your values and goals, know the market, and consider several available properties.
Multiple Options Yield Better Decisions
Decision-making experts are clear. Your likelihood of success increases when you consider several alternatives. If you analyze only one property, you’re excluding all others. By examining more alternatives, you’re more likely to find a better match for your values and objectives.
Make Multiple Offers
My experience of writing 3000+ offers shows that a multiple-offer strategy is the most effective way to build legacy wealth. Writing multiple offers enables you to explore two to five times as many possibilities. You discover which sellers are most motivated and which available properties are the best fit for you. Here’s why.
Most offers aren’t accepted. Maybe 20–35% of the accepted offers don’t close. If you’re making one offer at a time, you must re-start whenever your escrow fails. But multiple offers enable you to learn far more in the same time. Multiple offers increase your odds of success, but there’s a catch.
Use a Proven System to Track Opportunities and Offers
People have only limited ability to juggle decision criteria and comparisons in their heads. To make a multiple offers strategy work, you need an easy way to remember your choices and compare trade-offs. My team uses a simple dashboard with our clients.
The dashboard simplifies comparison of the most critical information about current targets. As properties drop out or are added, we can quickly assess where each one ranks.
Expand beyond only one property at a time. Better decisions result from comparing several options.
Multiple offers provide better market intelligence.
When an offer isn’t accepted or property does not meet your investment expectations, you’re progressing with other opportunities.
A decision aid, such as our team’s dashboard, helps you get the best from your multiple offer strategy.
Terry Moore, CCIM, is the author of Building Legacy Wealth: How to Build Wealth and Live a Life Worth Imitating. Read his “Welcome to My Blog.”