Most investors focus almost entirely on purchase price when negotiating a real estate deal. But price is only one piece of the offer.
In this episode of The Co-Living Show, Miller McSwain and Craig Curelop break down how they structure and negotiate real estate offers, including the different levers that can potentially save you tens of thousands of dollars or dramatically improve your cash-on-cash return.
They walk through the major components of an offer, including purchase price, closing timelines, inspection contingencies, appraisal gaps, financing contingencies, earnest money, seller concessions, and closing costs.
Miller and Craig also dive into more creative strategies such as assumable loans, subject-to financing, seller financing, invoice authorization, and using agent commissions strategically.
You’ll also hear the difference between Miller and Craig’s acquisition approaches. Miller shares his numbers-driven system of determining the exact price needed to hit a target return, submitting offers based on how far the property is from that number, and consistently following up with sellers. Craig explains his more seller-focused approach of understanding the seller’s situation first, then structuring the terms around what matters most to both sides.
In this episode, we cover:
- Why purchase price isn’t always the most important number
- How closing dates can strengthen or weaken an offer
- Inspection, appraisal, insurance, and financing contingencies
- How seller credits can improve cash-on-cash returns
- Assumable mortgages and when they make sense
- Subject-to and seller-financing strategies
- Using invoice authorization to finance renovations
- How earnest money impacts the strength of your offer
- Miller’s return-based acquisition strategy
- Craig’s seller-first negotiation approach
- Why consistent follow-up can lead to significantly better deals
A single negotiation strategy can sometimes mean the difference between an average investment and a great one.
Connect with the hosts:
Miller McSwain
Instagram: https://www.instagram.com/millermcswain/
Craig Curelop
Instagram: https://www.instagram.com/craigcurelop/
