Posted by Ed Garcia on December 30, 2000 at 12:16:41:
In answering the first part of your post. You start out by saying, ?(My neighbor passed away recently he was elderly, family (son and daughter) both live out of town. Great property valued at around $160,000. Asking $155,000. But I believe they’ll sell it cheaper.) You sound like you know your neighbor and then you say?. (Because it’s right next-door to me. How do I approach the seller thru the broker with the deal? Or should I find out who the seller is and approach him myself. I NEED TO MAKE A NO MONEY DOWN DEAL WITH THE SELLER.). Do you know them or not? I guess what you are saying is that you don’t know the son and daughter?
Free Spirit, If the property is listed, then go through the broker. They’re getting paid to handle this deal any way. Once a broker is involved, you have to live with them, so that’s as good as place as any to start. If it’s not listed, then speak to who ever is taking care of or renting the house. If the house is vacant, then send a letter to the neighbor, and I’m sure it will get forwarded to the son, daughter, or who ever is handling your neighbors estate.
For the second part of your question, (How do I approach her?), You go to the house and knock on the door. Again there is an agent involved, she may refer you back to her agent, but it’s worth a try and a good experience for you. (( Any time you can work directly with a buyer or seller you have a better chance of getting the deal that you want.))
Free Spirit, I would go through the agent on the first deal. The reason is because you don’t know how long it will take you to contact the seller, and meanwhile the agent is out trying to sell the house. There may be some complications in the deal because of the recent death.
Free Spirit, we haven’t talked much about the buys, so I want you to know that the first 10% of a deal is AIR?.it covers discount and commission. Knowing that going into the deal for $207,000 the property is only worth $186,000. Remember?. you make your money on the buy?. You’ve given us a range from $180,000 to $1,500,000. Too much of a spread for me to calculate from California. You talk about redevelopment and building two homes on it. This sounds like an upper side residential area, and may not necessarily pencil out for rental properties. Especially after building a new dwelling. My suggestion if for you to have a game plan no matter which house you buy. I feel your tire kicking. Your numbers are not well thought out and you’re guessing.
I realize that this is all a new experience for you and I’d like to recommend that you read the How-To Articles on this site. I have an article there titled (Making Money When You Buy)
Good luck Free Spirit,