Posted by Ed Copp (OH) on June 22, 2001 at 19:13:59:
Since he has an ad in the paper the thing to do here is to eliminate the competition.
You could write him an offer that he would agree to and fax it to him having him sign it and fax it back to you tonight. Thus the competetion is out in the cold.
Now make your offer subject to something. Like subject to an appraisal suitable to the needs of the buyer. Or something else, like a termite inspection or the purchaser being able to borrow funds suitable to the requirements of this transaction.
Get a signature and get in the game, or monday after you go to the court house he will quite likely tell you that the place is already sold.
This will be my first deal so adrenaline is pumpin. Think I got a motivated seller. He has a 2 unit rental with a piti=580. Units rent 550 a piece. Owner lives out of state and has a elderly lady fielding calls for him. I talk to him he seems flexible. Wants 50,000 for property comps have yet to be determined going to courthouse on mon morn. They will probally come in at 45,000. Got that number from the other homes in the are in the paper actually they come in at near 55,000. Any rate I want to use SteveS(CPA) idea and give the owner a couple of options. He stated that he just didnt want to “give it away” that is why he seems flexable to me. I briefly mentioned buying on a land contract but didnt get into a deep discussion. He even mentioned he will talk about selling with a 6 year ballon. Whata you guys think let me know. Dont hold back. Should I try to find a buyer to flip it to i need cash. Should I try to have him deed me the property subject to. I think he will want something(money) how do I structure this offer. Its in a declining neighborhood but rentals seem to go fast. Even told me the next house is vacant they might want to sell also!! Can this be done kinda in a hurry because I answered his ad in the paper dont want someone to beat me to this one. Any help would be greatly appreciated thank you!
You haven’t done your homework. I agree with Ed Copp, get it tied up then figure out the value. If the structure of tie-up contract later looks poor, perhaps you and the seller can rework it into something you both like. If not, no great loss–walk away. Remember: YOU NEVER HAVE TO BUY. You can learn what you can and go your merry way, unencumbered by that house.
I do not like the “declining neighborhood description.” Unless you know what you are doing, you probably should not be owning there.
Look for better neighborhoods to target.
When you find those neighborhoods, for heavens sake get out there and look at your “100 houses” before making an offer–from Bill Green’s “Think Like a Millionaire” book. Don’t be wandering around like a blind person, when it is so easy to be clear on values.