HELP First Deal. Owner wants more $ down - Posted by Adriana Guizar

Posted by Snackbar on May 29, 2001 at 20:17:29:

My advice is, If the deal doesnt work to where it feels win/win, move on. There are too many deals out there to be too concerned with this one. It took me forever to find my first deal. The wait is worth every minute of every day.
Good Luck,
Snackbar

HELP First Deal. Owner wants more $ down - Posted by Adriana Guizar

Posted by Adriana Guizar on May 27, 2001 at 22:14:09:

I’m using Carltons course and just put an offer in. Im lucky enough to have $20,00 in my savings accoun (and have a 2 yr old bankruptcy) but dont want to touch that money to purshase.
my offer was as follows:
$140,000
$5,000 down (out of fear of saying “no money down”)
Property is owned free and clear so he will carry at 6.75%, payments $900 per month P.I. note due and payable in 10 years. The price I offered is low (so I’m sure will be negotiating that) but whats funny is that he was more upset an the down payment. he said he wouldnt consider anything less than 10%.he’s reason for this is that if I put a larger down payment I will be more commited to the property (he’s afraid that, lets say we lost our job, we would disapear and abandon the property)
dipite the fact that I told him that as soon as I move in I will be doing some nice work on the house (new paint carpet finsh hard wood floors) he still has fears (“what if you paint the wall black”
what can I do to close this deal?

HELP

Re: HELP First Deal. Owner wants more $ down - Posted by wayne

Posted by wayne on June 09, 2001 at 01:58:08:

oh and make sure if you do use other collateral as recommended in the other responses that you leave yourself the right in the contract to substitue other collateral to replace it.

(just trying to help you cover all your bases)

Re: HELP First Deal. Owner wants more $ down - Posted by wayne

Posted by wayne on June 09, 2001 at 01:56:35:

I have read the other responses and they are quite valid in what they are saying, and only one really replies to your concerns of not wanting to put no money down. Since this is your first deal, I completely understand the hesitation to not dip into your own savings. If you are really opposed to this then you may want to try a couple of different options.

Since you are familiar with carletons course…then try the negotion throwaways, seller to provide painting inside and out, seller to provide 2 year warranty on all appliances…blah blah blah…consult your manual for more options …then the seller seeing how much this will cost him “say 5k” will back out of his requirment of 5 percent down in exchange for you not getting those stipulations. This way you can get the property with 0 down.

Or you can attain a second “junior” mortgage on the property for 5k to attain this using your existing money "deposited into 5-1000 dollars cds as collateral. this way you still keep your money, make sure to account the the extra interest in your second mortgage or note with a third party to make sure the property is still profitable.

Finally, I would be negligent to not mention “even though I know you are adamant about it” to not mention your existing capital. If you run the deal the way it is proposed in your posting, and you see that you have a good lucrative investment, then you might want to reconsider your stance against the 5k, otherwise you will have to just walk away from the deal.

Re: HELP First Deal. Owner wants more $ down - Posted by Stu Silver

Posted by Stu Silver on May 28, 2001 at 07:56:17:

Adriana,

How are you? Fine I hope.

The Seller is voicing real objections. In my experience, the opportunity to buy little or no money down requires two main components:

  1. Highly motivated seller
  2. Seller trusting the buyer not to walk away afterwards

It appears your seller is not so motivated that he will take an offer with only 5,000 down.

The seller has also voiced an objection to getting the property back if you lose your job, and with rooms painted black.

I would try to get the seller’s trust by showing him either where you live now, or where you have lived in the past. As to your job, perhaps you might share a resume of your prior work experience.

If this fails, then come up with another way, aside from cash, to give the Seller more collateral - perhaps a car, a boat, a note etc.

If all of the above fail, cheerfully tell the seller that it appears you can not come to terms now, but the door is always open, and you are flexible, should the seller change his/her mind in the future.

Then go out and hunt up another deal.

Stu Silver, CCIM
Instructor at Russ Whitney’s Millionaire U

Re: HELP First Deal. Owner wants more $ down - Posted by Derrick

Posted by Derrick on May 29, 2001 at 06:56:09:

Carlton’s course to offer a blanket mortgage. Wrap a car or some other asset inot the deal to give the seller more sercurity. Don’t forget to include an escape clause so that after a certain dollar amount or time has lapsed you can unsecure the additional property.

Regards,
Dawn&Derrick
Independent Associates
Group Benefits Specialists

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Do you think Attorney fees are AFFORDABLE for the AVERAGE person?
http://www.prepaidlegal.com/info/dawnanderrick
It does for your Attorney and legal bills what Major Medical does for Doctor
and Hospital bills.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
NYSE Symbol: PPD