Posted by Ed Garcia on June 23, 2011 at 13:55:33:
Edna,
Please help me understand why as you say the Full Market Value is $200,000,
you would consider purchasing it in this market for $319,000.
You further say, Rental income possibility for project: $2700 I want to make an offer on this property as it will be used for a homeless shelter project and NYS will give me down payment assistance after 2 years.
This is all IF, COME, MAYBE.
In all honesty I don?t like your deal and feel that you have become attached to the deal.
The first thing you learn in this business of REI is not to get attached to the deal. You have to disassociate yourself from the deal in order to make the right decision.
Finally you say, (How can I make an amicable offer to SELLER, as I have nothing but 1 months rent and 1 months security?)
Even though I don?t agree with your deal or like it, I will tell you the best way to do it in this market and with the circumstances you?ve given, is
LEASE/OPTION. You?ve indicated that you?re paying over market, if the value doesn?t increase in the next few years (which it won?t) you?ve basically rented the subject property and don?t have to worry about it appraising for what you?ve paid for it and can just not exercise your option. If it should appraise down the road and you still want to continue with the deal and it does make sense, you can close it for the amount agreed on.
The seller should love the deal because they are not going to find a lot of buyers for a property being asked $119,000 over market.
Ed Garcia