Posted by evelyn (FL) on March 11, 2001 at 01:14:13:
They started at $89k and took $40k!!! HOLY MOLY!!
Why can’t I find deals like that!!!
Evelyn
A Foreclosure - Posted by Thomas
Posted by Thomas on March 08, 2001 at 13:32:14:
Are there any things I need to know about purchasing a corporate owned forclosure that are different from other properties…?
It needs at least 5k+ in work on it and they are asking 78k.
The tax assessor site states 1200 taxes a year and that November of last year they purchased it for 55.5k.
Its not in good shape and we certainly are NOT going to offer 78k… In fact since they just bought it and are being forclosed we were going to make a 55.5k offer because of it’s condition…
Thanks a ton!
Thomas
“corporate owned” = big discount - Posted by JoeKaiser
Posted by JoeKaiser on March 08, 2001 at 13:38:28:
Big business guys with deep pockets can take a big hit on a troublesome property and not miss their two o’clock tee time.
Aim low!
Joe
Re: “corporate owned” = big discount - Posted by Thomas
Posted by Thomas on March 08, 2001 at 13:45:05:
Would you say that offering them exactly what they paid for it(55.5k) in a 90k comp area is low enough?
By the way thanks for answering!
Re: “corporate owned” = big discount - Posted by JoeKaiser
Posted by JoeKaiser on March 08, 2001 at 14:00:40:
Thomas,
That’s something I couldn’t answer without talking to someone first. I don’t like blindly making offers without first knowing what’s going on inside the head of the seller (see my how to article . . . get on the same page with the seller).
Of course, if there’s an agent involved, that makes it a little tougher, but you need to talk to the seller or his agent and poke around a bit to determine where they’re at.
They may very well be inclinded to accept the first offer that hit’s their desk.
If they’re in foreclosure now, no, I wouldn’t offer what they paid for it. That’s a meaningless number now. Quick cash is generally 50 cents on the dollar. If they really want it done today, then that’s where you need to start.
Joe
Re: “corporate owned” = big discount - Posted by Thomas
Posted by Thomas on March 08, 2001 at 14:17:55:
Well, the only information I got from the agent so far is that its in forclosure and “that im not supposed to tell you that” after he said that…
Ok, i’m not sure why it would be a meaningless # but if I understand you right you say that I need to offer around in 40k area?
Re: “corporate owned” = big discount - Posted by JoeKaiser
Posted by JoeKaiser on March 08, 2001 at 14:31:17:
What someone paid for a property has little bearing on what they can get for it. Sure, sometimes it is an emotionally criteria that needs to be satisfied, but we’re talking business people here who understand the value of just getting things done and going on to the next one.
Whenever an agent tells you things he’s not supposed to tell you, you can pretty much figure that he’ll keep telling you things he’s not supposed to tell. Call him back and ask him how much room the seller has. You do this by letting him know you want to make an offer but you don’t want to insult the seller with a lowball offer. You tell him you’re an investor and ask permission to submit an “investor type” offer. With any luck, if he knows their number, he’ll likely spill the beans in some manner.
Joe
Re: “corporate owned” = big discount - Posted by Thomas
Posted by Thomas on March 08, 2001 at 14:37:22:
Im understanding better now… Thanks a ton for helping!
I read your article too…
Is there any other things I might ask or hint to for information?
On our first call I managed to get us laughing about his “whoops” …
Is that a good start
Re: “corporate owned” = big discount - Posted by Thomas
Posted by Thomas on March 08, 2001 at 21:50:33:
Considering this situation, how would you suggest I go about getting to the seller?
Re: “corporate owned” = big discount - Posted by JoeKaiser
Posted by JoeKaiser on March 08, 2001 at 16:31:47:
Thomas, it’s the seller you want to get on your side, not the agent . . . but you’re on the right track.
Joe
Re: “corporate owned” = big discount - Posted by Carey_PA
Posted by Carey_PA on March 09, 2001 at 09:29:16:
Thomas,
I made an offer on a bank owned property. They first started asking $89k, when I got around to my offer which was $40K…well they accepted it. And I was FURIOUS, because I thought, “I bet they would have accepted LESS” Soooo, always start out low, you can eventually go higher if you need to, but if you start high, it’s tough to say ummmm no I meant to offer you $20k less.
CAREY