Posted by B.L.Renfrow on March 17, 2004 at 23:43:18:
Not everyone may agree with me, but that multiple offer stuff is seminar B.S., and all it does is peg you as a newbie. Better to sit down with the seller, find out what he needs, and find out whether or not there’s a way to make it work for both of you.
Remember, just because the seller is willing to carry financing doesn’t make it a good deal. You need solid comps. You mention there’s not a lot of equity, but you need very specific numbers as to what the properties are worth. You also need to know what you’re going to do with them. Rent them? You need to know going rents for similar properties. Sell them? What are you going to do to increase the value?
Without this information, and without knowing your cash and credit situation, it’s impossible to make specific recommendations. But keep in mind that if you have no/little cash or credit, you have no business buying properties to hold.
Of course, whatever the seller tells you should be verified. “A little repair” might mean only a new roof and foundation to your seller. Again, you need specific, independent information.
I contacted a guy that has two properties and three extra lots on one pin.He is in the process of having them surveyed.he is an investor and is flexible with his selling terms.One needs a little repair and the other doesn’t need any real repairs (aside of cosmetics)both are currently livable and Both are tenanted.He wants $130K each as is, He’s willing to carry the mortgage (there’s not a lot of equity, I believe he owes around $220K.I wanted to offer him three offers,
1st
Sale $145K
Term 5 years
Payment cover his mortgage to the penny.
Interest 0
Down $2500.00
Repairs. Split them, he finishes the survey.
2nd
Sale $130K
Term 4 years
Payment What ever the tenants are currently renting at.
Interest 0
Down 0
Repairs. We’ll do and he does the survey.
3rd
Sale $150K
Term 4years
Payment What ever the tenants are currently at.
Interest 0
Down 0
Repairs. completed including survey
As I stated there are five lots three of which are wet lands and I’m not particularly interested in.
I really would like to know if making multiple offers is wise or should I shoot him the best one and work from there?