Number one thing I see is dont offer him any interest rate, let him offer you one. I go into my deals first offering a price and dont mention interest, sometimes I end up with deals structured with simple Interest, instead of compounded. The questions you ask to lead to this are what would you do with the cash if you had it, in some circumstances they will tell you that they are just going to put it into a CD earning 5%, and “voila” all the sudden 7% sounds really good.
Make more than a couple offers, maybe something like, for all cash one price, maybe for a little more of price you give him 50% now and 50% in five years, and then the last offer something like if he’ll Owner finance the whole thing you give him his price and your terms.
Best of Luck
David Alexander
A good book on negotiating RE deals for beginners is 101 ways to buy Real Estate by Wade Cook.
Another progress note on the “OH NO” thread… - Posted by Debra(SC)
Posted by Debra(SC) on January 16, 2000 at 21:40:58:
Okay ladies and gentlemen. I’m gettin’ down to the wire now. I have taken all your advice into consideration and have decided to write up a contract with 2 offers: one making a offer of about $28,000 (I’ll know for sure when my Realtor friend does a REAL comparative on the property). The second offer will be owner financing (which he also has agreed to do). My next question is - how much of an interest rate should I offer him to make him bite? I know with MH’s 16-18% is good when using investor’s $$, but what about SFH’s? Also, can I write a clause where my payments will start in 30 days or so, so that I can find a buyer or the deal will be null and void?
Hopefully, I’ll look back at this one day and laugh about the whole thing
Debra
(1,000 thanks to all of you)
P.S. please forgive misspellings. My brain is goind faster than my fingers.
P.P.S. By the way, I was out of town Satur. and Sunday and wouldn’t you know it? The seller called me Satur. evening and left a message reminding me to put a clause in the contract stating I will get my $$ back if I don’t sell the house. Is he being nice or slick or what? I just talked to him FRIDAY EVENING!!
