108 DEAN GRAZIOSI
The potential is amazing and some of our best deals are with ho- meowners who own their properties free and clear but need to move out or must sell right away. It’s the 25:1 program. We’re making 25 offers for every one that gets accepted. As we previously discussed, the right real estate agent can make the difference. Your real estate agent can assist you to sift, sort, and screen through the active listings to try to determine the most motivated sellers. Remember, you are looking for sell- ers who need to sell rather than just those who want to sell. You want to go through all the active listings to determine the most motivated sellers based on such things as time on market with price reductions or key words such as vacant, as-is, handy-man special, bank owned, foreclosure, estate, probate, etc. If you make offers to the most motivated sellers, you improve your odds of getting 1 out of 25 offers accepted by the seller. It’s worth the effort, because that one deal is guaranteed to be highly profitable. It is a numbers game because you are mak- ing many offers, but it is also a science to sift, sort, and screen through the active listings to try to determine the most moti- vated sellers. We’ve had students call up or write in and say they’re doing bet- ter than 25:1; they’re actually getting three to five deals for every 25 offers. The problem is that they’re not doing better, they’re paying too much. Think about it. If you’re getting more than the 25:1 ratio, then you’re offering too much, which gets you more deals. If this begins to happen, adjust your offers down- ward. Maintaining the 25:1 ratio means that you’re getting the deepest discounts and making the highest profit possible.
Of course, it works the other way, too. If you’re making 100 offers and still looking for an acceptance, or even 50, you’re not
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