Posted by George(OH) on April 09, 2000 at 16:12:58:
Thanks for responding.
Thanks
I did forget to mention that these were FSBO’s/abandoned properties. I must emphasize that I would ONLY submit offers on properties in areas that I know like the back of my hand. I have a contingency clause to protect me.
You’re absolutely right - I am waiting for him to return my call to find out his needs. I just wondered if I was totally far off as far as the concept of offering 30% less than FMV, the hard money loan, etc.
Thanks again for responding (and dealing with “greeness”)
Posted by George(OH) on April 09, 2000 at 12:00:18:
In a FSBO ad, what does it mean when you see 3% coop, or “will coop”?
I want to save some time by just writing offers before viewing the properties. Although I’m a newbie, I’m VERY familiar with certain areas and these are the ONLY areas I would attempt to do this. What is the best way to present my offer? Should I just mail/fax it with a letter of intent? Visit the seller?
Possible deal: 2 story, 3BR, 1BA SFH, tenant to stay, no repairs needed; 1280 sq ft; tenant pays $575 + utilities; comps at 51K, seller wants 46K; no liens; taxes current; my idea is to offer bet 32-35K, obtain a 65% hard money loan which would pay off the seller, make 18% interest only payments for 1 year, then refinance to pay the hard loan back. Does this sound totally ridiculous?
Thanks in advance for any feedback. And with regards to #3, don’t be TOO hard on me. I’m trying to “expand my horizons” beyond L/O’s and flips
Re: 3 quick Newbie questions - Posted by WilliamGA
Posted by WilliamGA on April 09, 2000 at 13:02:42:
George,
“will coop” usually means that the seller will welcome realtors to make offers but will only pay the % listed as a fee. In this case it would be 3%.
Hard to say how you should present your offers with out a knowing a little more about the sellers. Are they FSBO’s, listed with a realtor? This would have some bearing on how to present the offers. To this I would add that as a newbie, I would probably not make offers on properties without taking a look. That is something I would not try until I had a little more experience.
On this deal, have you tried talking to the seller to see what they need out of the deal? Before I would try to put together an offer, I would talk to them and see what they need. You might be pleasantly surprised at what they will tell you.