Re: How to Handle Refinanced Loan? - Posted by Matt B
Posted by Matt B on January 30, 2001 at 11:21:42:
Here is the technique to use when they “play the refinanced card”. As you stand facing the seller, do a 180 degree turn. Then extend your right foot forward approximately 18 inches and set it down. Repeat this procedure with your left foot, and continue until you are back out to your car, driving away from bad deal.
You have already answered your own question. You know what your MAO is. Don’t keep trying to squeeze a deal out of something that is obviously not. Why didn’t you find out about the mortgage when you first talked to this guy? That is pretty darned important. One of the VERY FIRST questions that you need to ask is if there is a mortgage and how much is owed.
If you already asked this and the seller just now got around to telling you, that’s a different story. However, if you’re not bothering to ask about this before you waste a whole lot of time checking out what repairs it needs, pulling comps, submitting offers, etc., the deals you do will be few and far between.
Get the information that you need FIRST before taking the time to go look at a property. Find out the seller’s motivation level, find out what they NEED. Notice how I said to find out what they need and not what they want. Even if you you forgot to ask if there was a mortgage, if you had asked what the seller needed, he would probably tell you that he needed to pay off the mortgage on the house!!
Don’t try to tweak that MAO formula that you’re using just to try to justify getting into a bad deal. Stick with the formula unless you want to learn some hard lessons. There are PLENTY of good deals out there. Don’t think you have to sign up every property you come across. But make sure to start by getting the information that you need FIRST before wasting any time. Good luck.