Posted by M.Osterman on January 16, 2003 at 13:54:55:
It doesn’t sound like he’s all that motivated. If he were he’d be saying different things.
I agree with Percey, find out what his needs are. If it’s cash, then find out how much. Maybe he wants the cash flow ( offer him a lease option ).
good luck.
Mike
HELP! Motivated seller, don’t know how to proceed - Posted by John (DFW, TX)
Posted by John (DFW, TX) on January 16, 2003 at 12:48:23:
Hello,
Here is my situation:
Seller calls me who lives in Colorado.
He has a vacant house here in TX.
He has owned it since '84 and still carries a 50K mort. balance.
Last tenants moved out and he is tired of the long distance landlord thing.
When I asked him what the least he would accept on an all cash deal he wouldn’t give me a number stating that he is out of touch with the local market.
I said “ok, it sounds like you are wanting as close to market value as you can get. I won’t be able to pay you all cash in that amount, but I will be able to make you a small downpayment and pay the balance of your equity in monthly installments.”
He said that is something he would consider.
Quick comps of the area show mid 90’s to low 100’s. According to him it will need outside paint, part of the kitchen cabinet which is bare wood, and some gaps in paneling.
What should I do next:
I haven’t seen the house yet.
How can I do more due diligance and not be able to get inside the home?
How should I pitch my offer to him, verbal, by fax?
In essence, I don’t really know what to do now.
No, wait, thats not totally true, actually I think I do have an idea of what to do next… but I think honestly the fear of the unknown is gripping me here.
I think it would help if someone would do a little hand holding for me.
If this were you, how would you proceed?
What would your offer look like based on these limited numbers?
Usually rents go for about 1% here, so assuming a $900/month rent market value and the comps above are in line, what numbers would you offer?
Thanks for your help!
John
… - Posted by Heather -Tx
Posted by Heather -Tx on January 17, 2003 at 07:44:50:
Where in Texas is this House ? How long will it take to fix and resell ? If he is in Col. THere may be alot more damages that he doesn’t yet know about. Whatever you do offer I would have a “upon inspection” Clause in there along with a few others. Defintely “feel” him out a bit more before bringing up numbers yourself… its much nicer when you can get them to bring up numbers, even in a roundabout way. If you know he owes 50K, then by asking him how much he wants of his equity, and what he plans on doing with that money once he gets it, can really help you know what your looking at.
Hoe this Helps,
Heather-Tx
Re: HELP! Motivated seller - Posted by Percy
Posted by Percy on January 16, 2003 at 13:08:51:
You don’t pitch your offer. You establish a rapport with the seller, determine their NEEDs and discuss something that satisfies that need.
One way to do this by asking several leading questions:
What is he going to do if the house doesn’t sell?
Is he going to be able to keep current on the payments since the tenants moved out?
With that about of equity and if the seller is truly motivated, there is a way to make the deal work.
I am also Dallas and maybe interested if you want to work out something on the deal.
Re: … - Posted by Heather-Tx
Posted by Heather-Tx on January 17, 2003 at 10:11:16:
Ermm Hope this helps even 
Gotta love my typo!