Posted by Jim on March 09, 2001 at 18:03:14:
Rick.
I did ask him what he planned to do if he didn’t sell it…
His Response… I’ll just stay here! (Like I said, “NOT VERY MOTIVATED”) I’m glad we got this done over the phone. I’ll tell you…I used to make trips to these houses only to find out what you can find out right there on the phone!
Not anymore!.. Ask the questions on the phone!! Saves you a lot of time & gasoline, and gives you time to work with sellers that want to move their property NOW!
"I BUY HOUSES…CASH! - Posted by Jim
Posted by Jim on March 08, 2001 at 22:13:08:
That’s… if the deal makes sense and it is in the vicinity of 50¢ on the dollar (usually the fixers), and owned free and clear.
Now, when a seller calls and says are you the guy that buys houses, and you reply yes, and then he says… you can come down right now and buy this one. I just want out of this house and I want to move out of state.
My house is in excellent shape, needs no work. It was just recently remodeled, and was appraised last November for $97,000.00. I owe $54,000.00 and have about $43,000.00 in equity. I want to get as much as I can for that equity and move on.
Now, I’m certainly not going to buy his equity from him for full price! (Where would my profit be)? So when I tell the guy this he says “Your Ad says you buy houses CASH”!
The only thing I told him was that I do buy houses and I do buy for all cash, but if I were to pay him all cash for his house it would only be enough to pay off his underlying loan and that’s only because the house needed no work, otherwise it would be even lower. (Even down-right embarrasing to him)
I did tell him however, that I would agree to buy his house for close to full market value under my terms. He said he wants all of his equity in cash so he can move on…blah, blah, blah! (No Terms)
His final response was that he’ll call some of the other investors in the paper and the first one there with the cash gets the house!
I wished him the best of luck and I’ll just wait for his call in a few days or weeks or months to do something creative.
Would any of you have done it any differently? He sounds motivated by needing to move fast, but on the other hand he don’t because he wants all of his equity before he moves. Hmmmm
Jim
Re: "I BUY HOUSES…CASH! - Posted by Rick(CA)
Posted by Rick(CA) on March 09, 2001 at 14:11:36:
I agree with Sue. The guy who called your ad saw you as a way to sell his house for full value without going to a real estate office and listing it. They don’t understand the business. How many of us did before we learned? I certainly remember seeing those signs years ago and thought the same thing.
Perhaps you should have asked him what he was going to do if he couldn’t sell it. Get the wheels turning. Definately follow up with him shortly. I’m sure after calling the other ads, he got the same message.
Re: "I BUY HOUSES…CASH! - Posted by SueC
Posted by SueC on March 09, 2001 at 08:14:34:
Offering all cash is confusing to the retail homeowner sometimes, since they don’t understand the concept of doing REI as a business: cash means a discount, terms gets full price (or near). Ultimately, he wasn’t that motivated. I think you did it just right, you are in this to do what makes business sense to YOU. You are running a business. He can take your offer or leave it.
Maybe what I would do is not just wait for him to call, but call him in a week or two to see if he got a better offer. If he finds the same response from other investors, you might be the one that’s right there when he finally gets realistic.
I’ve run up against several of these lately, they say they need out right away but insist on full value, or their property is so beat up that only investors would take it, but they don’t want to give the investor any room to make a profit.
Re: "I BUY HOUSES…CASH! - Posted by Vic
Posted by Vic on March 08, 2001 at 22:43:44:
Jim,
I had a very similar call today, with numbers that were almost identical to yours.
The guy had a house he needed to sell. He owes 64 on it, is behind another 4500 in pmts. House is worth about 97K. He said he wanted 25K for his equity. For what it’s worth, I handled it almost exactly as you did. I did however offer him 5K for his equity. Needles to say, he say he wasn’t crazy about that. I told him call me back if he couldn’t do better.
When they have that much equity & they want it in cash, there’s not a whole lot that you can do about it, at least as far as I know. I hope I’m missing something somewhere on these types of deals. I really don’t know how you can give somebody all their equity without borrowing it some kind of way.
Might not be a bad idea to follow up sometime in future, although I hardly ever do. My ad runs in paper every day, so they can always find me if they want to.
Good Luck,
Vic