AHHHH -- Info overload! - Posted by Jon in GA

Posted by Brent_IL on May 23, 2002 at 07:52:08:

My specialty is using “fuzzy math” to lower the costs of RE acquisition, so I can appreciate your concern.

Sellers will accept offers that appear unbelievable to the uninitiated when they feel that your offer gets them where they want to go. Every offer I make includes seller-financing at one percent, or less, interest; payment and pay-off discounts; subordination; substitution of collateral; and a mortgage to secure seller performance. Many times the sellers make their own down payments, and do so happily. A skeptic would say this could never happen, but many posters on this board do this every week of their lives. Make offer that are good for you, and fair to your sellers, and they will be accepted. The final offer needs to be financially viable.

One caveat, don?t use the jargon or buzzwords that we use among CRE investors with sellers or agents. It confuses or frightens them. Describe what you?re speaking about instead.

Realtors®, for the most part, will not take you seriously. They are not trained in CRE techniques and lack the incentive or inclination to become knowledgeable. They have trouble presenting an offer that they don?t understand. RE agents who are least affected by this are the very new, or the very experienced. The way around this is to work with one, or two agents semi-exclusively who you have trained. My primary agent has two functions; light information gathering, and reassuring the listing agent that they will receive a commission regardless of the nature of my offer. I can handle everything else. With experience, so can you.

Unrelated to the question, I thought that if Jim went to the trouble to use the ®, that I should stop being lazy and follow his example.

AHHHH – Info overload! - Posted by Jon in GA

Posted by Jon in GA on May 22, 2002 at 23:47:28:

I’m a newbie that has studied everything real estate related for 3 months now. I ordered the CS NO money Down course, but did not find it as helpful as I had hoped. I’ve decided I want to do rehabs. Buy wholesale, sell retail, cha-ching. Looked at 20 properties last weekend, took my notes, found a couple worth exploring. In my head the next logical step would be to consult sources of financing (correct me if I’m wrong). One lender over the phone gave me a ball park of 114k that his institution could lend me. I like this. I don’t like him (he wanted me to do an FHA owner-occupied, knowing I wouldn’t live there at all-- kind of sleezy (and illegal). My problem is I can get financing, I’ve got down payment cash (10%), but when it comes to holding and/or rehab costs I’m going to come up short. Yeah, I can perform some of my friend Carleton’s “fuzzy math” or numerical magic to reduce my down payment, but will a seller really fall for this? Also, will the realtor take me seriously? (mine and theirs)
Any help is appreciated. Am I going in the right direction? I have read so much and have so many different ideas in my head…