Knowing When It's The Right Buyer

Walter S. Sanford
September 13, 2011 — 1,010 views  
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Sometimes, you have the right buyer who wants to buy from a seller that you think should have the motivation to sell.  This process can be  frustrating.  Add in the fact, that you have both ends of the transaction and your buyer doesn’t believe that you can’t get the job done.  Also, you know that your seller must sell, but all is for naught…because the sellers just will not get together to move forward.  
 
Often the only thing you can do is send a final letter to the sellers, outlining from what they might be walking away.  The letter might get to some partners who haven’t heard the whole story.  The letter might make them realize what costs are and also give them a glimpse of the future.  It also shows your buyer that you are doing everything possible to make the deal happen!  At this point, what do you have to lose? 
 
Take a look at a letter that I did for a coaching client this week:

Date
 
Name
Address (send to all addresses you have for the sellers)
City, ST  ZIP

Name:
 
I am writing to you, because our discussions have not made sense to me.  Through the years, I have too often heard the statement -- “I wish that I had taken that offer you brought me last year.”  Sometimes, it was because the seller did not understand the advantages on jumping on an opportunity from the rare “right” buyer.
 
I have included a copy of the offer to each of the addresses that I have in my file.  I cannot disclose the name of the buyer until it is accepted.  I have this buyer pre-approved for financing and I have confirmed their down payment.  
 
Based on the ownership of your property, the taxes, insurance, utilities, and maintenance would be about $_____ per month, should you keep the real estate.  
 
Based on the sales price less what you owe and less closing costs should you accept this offer, your equity is approximately$__________.  Should you invest the equity at a current safe return of 4% that would return $_______ per month.  When you add your monthly costs and the monthly loss of opportunity income from your equity, you are losing $________ per month.
 
I realize that your decision not to sell may have nothing to do with money; however, if that is an issue, we are also coming upon some changing times.  Higher interest rates will reduce future buyers and reduce final sales prices.  It will, however, increase your safe return income on your equity should you sell.  Selling would also end your management responsibilities.  
 
I have now said it all.  You are the boss, but you can't say you were not informed.  This offer is good for 15 more days.  After those fifteen days, we will be making offers on other properties.
 
Sometimes, there is one best buyer, and this one may be the one.  Please let me know your final decision at your earliest convenience.
 
Sincerely, 

Name
Company Name

An oil and gas lease lottery millionaire by age 16, Walter S. Sanford was in massive debt by the time he was 22.  Taking his winnings, he invested in over 400 units and found that high leverage real estate can be detrimental to your financial health.  

Obtaining his real estate brokerage license during the 80s, Walter went on to become what some believe to be one of the top agents in North America.  He built his career on systems that are in demand by virtually ever major franchise and top producing agent in the world.  1995 was Walter’s best year, in the midst of a real estate depression in Southern California, where he personally closed 316 transactions.

Walter S. Sanford

Sanford Systems & Strategies

After 30 years in the real estate industry, California real estate mega-broker Walter S. Sanford has seen it all. He's prospered in the real estate challenges we have every day! Challenges such as recessions . . . then depressions -- and has made three fortunes to remain standing as one of North America's greatest real estate success stories. (He will tell you why it took 3 times!) Walter joined the multitude of real estate agents when few mistakes could be made in the market of the late '70s. He quickly modeled his operations after the most successful agents in the business and, with several "out of the box" innovations of his own, earned a major fortune before the age of 20. Then the stern 1980s rolled around and the inexperienced Sanford found himself highly leveraged with negative cash flow on 409 apartment units. He promptly lost his equity and was left with the dubious distinction of losing more money in real estate than most people had ever made all by the age of 22. It was at this time that Walter graduated from USC with a major in real estate finance, and started his real estate career as a small independent in Long Beach, California. Needing $30,000 a month to pay off his past mistakes, Sanford combined aggressive promotion and the systematic use of teams. Soon he was closing more than 300 transactions per year. By 1982, Sanford was the dominant agent in California real estate and on his way to becoming North America's Number One RealtorĀ®. Since then, he developed numerous systems, technologies, and attitudes that enabled him to build what many consider to be one of the top real estate careers in North America with more than $70 million in production as a single-man office PER YEAR! A pioneer for personal promotion, the use of assistants and the effective research of hot demographic groups, Sanford operates a very profitable real estate system while building a respectable portfolio of properties for himself. An innovator and creator of nearly a quarter century in the real estate business, Sanford is one of the nations most requested speakers, parlaying vital and current information to beginning and advanced REALTORSĀ®, governmental agencies, economic advisors and national print and television media. No one gives more real, low cost, profit producing real estate ideas than Walter Sanford.