How would you structure an offer? - Posted by Jeff

Posted by michaela-CA on April 07, 2008 at 10:22:18:

You meanie, you.
Doing the Rocky Horror thing …‘an-ti-ci-pppa-tion’.

Come on, give the guy an answer, will ya :wink:

Michaela

How would you structure an offer? - Posted by Jeff

Posted by Jeff on April 06, 2008 at 15:02:59:

I have found 12 properties for sale by an elderly gentlemen 13 cash flowing (11sfh 1sfh+apt 1dplx)only 1 not rented. They are listed with a realtor. My town is around 12k pop with a 90% rental rate. Not much going on in geographics except the oil fields and prison. Not any sign of sub-prime stupidity around here. My question is for the experienced creative buyer. How would you approach this deal? the #s are $270,000 for all properties.(before negoications) rents $33,600 per yr. I could new owner rent raise to bring it up another $4,000 per yr. so possible $37,600 in rents. Now because he is elderly and i hear poor health, + the realtor I wonder if L/O isnt the best approach. BMCC isnt an option for me with out P/L or H/M. Please give me your detailed feedback.
Thanks.

Re: How would you structure an offer? - Posted by Natalie-VA

Posted by Natalie-VA on April 14, 2008 at 06:11:07:

Jeff,

I’ve bought and sold lots of houses over the years, but I’ve never done a volume deal like this. First, make sure you’re prepared to be a landlord. Not being able to do this could kill your deal regardless of how good the numbers might be.

I would analyze each house individually in order to come up with the max amount I could pay. If the seller doesn’t like my number, I would make an offer with a sales price that he likes, but terms that would suit me. For example, if he is set on receiving 270k, maybe you could give him that much, but have him seller finance at a really low interest rate that would make up the difference to you. You’d have to crunch the numbers to see what works.

–Natalie

How would u make an offer if u were in my shoes? - Posted by Jeff

Posted by Jeff on April 07, 2008 at 07:41:32:

I was in a rush when I posted this,It is actually $33,600 in positive cash flow based upon 10% piti per month of the 270k. Come on pro’s. This is supposed to be the #1 REI website… show me it is by some replies to this topic.

Re: How would u make an - Posted by James - Mich Investor

Posted by James - Mich Investor on April 07, 2008 at 10:19:28:

Dear Jeff,

Yes we, the Creonline.com community and more especially, myself, are very, very smart buggers and would LOVE to teach you in the way of creative deals.
Your attempt to ‘poke/chide/bribe perhaps’ us into replying to your post will not make us any more inclined to do so…but now that I think of it, maybe it will…

In any event, I hope the old man you are buying from is willing to do such a creative deal. You obviously know we ARE the smartest people on the face of the earth,
myself coming close to the top, but still a few rungs off, but nonetheless giving my answer only to wait for a much smarter member to give their advice.
You DID find out what the old guy wanted, didn’t you?
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Because if he wants to be cashed out and that’s his ONLY option ever, you’re screwed trying to offer him anything than less a cash (mortgage or cash) offer.

…but you already knew that because you’re smart for asking the smartest people on the planet (at least interweb) how to do this deal.

Love,
James - Michigan Investor

PS - Write back soon!

Re: How would u make an - Posted by Jeff

Posted by Jeff on April 07, 2008 at 22:14:17:

Very well said my friend. However to give a little more insight, I have not spoken to him, there is a realtor involved and I dont want to jump in to eagerly and bumble and stumble (where have I heard that before? oh yea,Bill Tyford- NLP studies)Naturally you would agree with me now that by picking the brains of the smartest investors in the world here at CRE will increase my chances of getting this deal not only done but done RIGHT the first time!Right? So there is an “good ole boy” realtor from this town were the properties are who may or may not be smart enough to think creative. I dont want him/her to screw things up by there opinions of “thats not conventional” or newly translated “wheres my commission” lol so Im speculating ofcourse but “what if Im right”? Surely James your seasoned unlike myself (at this stage in my life) and so I humblely bow to your geniusly observence.

Thanks
Jeff