Posted by Stacy (AZ) on May 06, 1999 at 11:37:41:
There are other investors. No hard feelings, this one wasn’t interested, so move on to the next. If you don’t have a list of other buyers (which you should), advertise for buyers with an ad. Try calling the “I Buy Houses” ads in the paper. If you know rehabbers or landlords through a RE Investment club, try calling them.
Why is this a debacle? What happened with the Realtor that would cause him not to pass you more leads? Did you already back-out of the contract?
Stacy
Diffrence in Opinion - Posted by Lew
Posted by Lew on May 06, 1999 at 11:09:35:
Hello Everyone,
As everyone who visits this site may be aware, I locate properties below market and then sell the paper to a cash investor for a fee. With one particular investor I am having a serious diffrence of oppinion in what’s considered a good buy. I Recently located a maintenance free home that comps show prices in this area being $52-55k the owner want $39000. The spread on this home I considered decent considering that it appears the owner did all the work before he had to suddenly re-locate. Anyway I Lock this property up with a PA and send my buyer to look at it the next day. The realtor says he complained that the area was not good, and he would not buy anything in this area. Now call me stupid, but Im wondering what area he was looking at But I did’nt think the area or the home was that bad 3BD 2BA 2CAR GARAGE FINISHED BASMENT, NEW KITCHEN FLOORS ETC. Any idea why he would react this way. The realtor is gave me leads other deals the same day, but after this debacle I can’t be assured I will get many more. Any suggestions??
Lew
Re: Diffrence in Opinion - Posted by Jim IL
Posted by Jim IL on May 06, 1999 at 12:23:15:
Lew,
Your situation can go two ways…depending on time.
How much time do you have until close?
If there is enough time, run an ad, and offer terms.
Price the house above $55k, maybe $60k and offer to “assist” in financing.
Carry back a second for the downpayment.
Many people can get 80-90% purchase mortgages, and you can carry back paper for the remaining amount.
If you carry back 20%, then they new buyer only needs a $48k loan. You make $9k now, and get a cash flow to boot on the other 20%.
Or
Offer 10% down, you carry 10% back and they get a new mortgage for the remaining amount.
or
run two ads:
like this:
MUST SELL
below market value
3BD 2BA 2CAR GARAGE FIN BSMNT, NEW KIT.
xxx-xxxx
or
No banks needed
low down,
immediate occupancy
xxx-xxxx
In the second ad, you take money down, carry a note for the remainder, and sell it at close to a note buyer. Of course there is a discount, but you get the downpayment and the note proceeds to close your end. ($39k)
Just get some kind of ad running and get a buyer NOW!!
Also, call some mortgage brokers. Tell them you have a nice home for sale, and you are willing to carry paper to cover the downpayment. They most likely have someone qualified for the 80-90%, but no dwn money.
If you have to, offer a small “referal” fee to the broker for sending you a client. (only as a last resort though, because remember, they get paid to get your buyer a mortgage)
Good luck,
Jim IL
Re: Diffrence in Opinion - Posted by Joe Kaiser
Posted by Joe Kaiser on May 06, 1999 at 12:13:13:
Lew, when investors run out of money they don’t often come right out and tell you. Instead, they “pass” on your deal for any number of other reasons.
Joe