One of my favorite buying techniques over the years has been LEMONADE OFFERS. The name comes from lemonade ingredients, lemons and sugar. Lemons, of course, are anything besides cash! Some of the best deals I’ve made were done with nearly all lemons.
Weak sellers, meaning their property is less marketable for many different reasons, will accept weak offers. Sometimes a property looks so disgusting and the tenants are so ugly that not one single buyer makes an offer to purchase.
When this happens, a seller becomes very discouraged, the ideal situation where lemonade offers work best! The seller is in a serious bind and really needs to sell, anything you offer, within reason of course, will stand an excellent chance of being accepted.
Lemonade offers won’t work unless they are perceived by sellers to be a fair exchange for what they’re selling. Remember, value is in the eye of the seller too! You must always be careful to avoid insulting owners with ridiculous proposals; otherwise you won’t be taken seriously! Don’t try this technique to purchase a premium “Grade A” apartment building. Owners of premium apartment buildings don’t need to accept your lemons! Don’t waste your time courting them! Below is an actual $20,00 down payment offer, I made and I was accepted by the seller for his 4 unit junker apartments…Purchase price $19,000 cash and other items.
$4,000 1968 Barracuda 318 engine
$500 1981 Suzuki SS, low mileage
$7500 Self-contained ’71 Winnebago, 60K mi
$1550 E2500 Honda generator, used 15 hours
$950, Cherrywood hutch, beautiful condition