Don’t give up. Your current scenario is why we haven’t tried to work with listed properties yet. Something that works for us is to ask the seller how to make this deal work. Then you fix it the way you want.
There are two keys point we always bring up when we run into the “I don’t know if” stall.
You could always lease the home, afterall it is your property. But what is your goal: to keep this property an out of town rental or to sell this home? If the tenants tear up the property who is responsible for the repairs? What about guaranteed vacancies? (Keep an eye on the realtor to see how they react.)
What other offers have you received? Of course, you do not have to accept my offer. However, I am commiting to make your payment today.
This approach may sound rough, but we have learned. We look for the “motivated” seller. If they do not go forward with our offer (after we address ALL their concerns), then move on. The bottom line: There are other deals and, besides, this mortgage is not our obligation if we don’t have a signed contract.
the local “expert” (real estate agent) has chimed in w/her 2 cents and mucking up the water!!!
Situation: He’s on his way to Maine, can’t afford 2 mortgages (Maine house has closed). His offer: Give me 15K for my equity and I’ll give you the payment book ($55K balance with PITI being $510)). FMV $80-85K No good, no got $15K!! My offer: $66,840 5 yr.L/O, $625/mo w/$200 applied as rent credit. “He” has a several concerns.
$625 is too low. “I could have rented it easily for $750”. Agent wants to “handle it” for him for $80/mo.
Hello, do the math, we’re within $70, should be able to work a deal. 2. $200/mo. credit is too much. He can’t seem to understand that he’s looking at a positive cash flow of $115+. All he can see to see is $625-$200=$425 and that won’t cover his PITI!! ( I need to put all this on paper so he’ll understand it.
Question: How do I get this done w/an agent sitting in on all this?? I KNOW she’ll not know “diddly” about L/O, creative financing, etc. My thought is to write answers to his objections and present it to him without benefit of her being there. He sees her as the expert, has known her for 6 years, etc.,etc. He has no objection to the length of the l/o, the offer price or most anything else in the contract. Any advise would be grately appreciate. I’d like to close this!! Oh, by the way; I ran an ad for Rent to Own and got 21 calls today…at a monthly rent of $850.00!!! This is a deal I WANT!!! Good cash flow AND good equity!
offer to pay the sellers commission!!! - Posted by Tom Moses
Posted by Tom Moses on December 02, 1999 at 20:46:34:
yes…she may be worried about a L/O and advising him that you will only have the option to buy and not that you will buy at the end of your option. (scaring him). Their main interest as an agent is how are they going to get paid and she/he may want to know that up front. Then they may be more interested in getting this deal closed after you cover cash with them.
Get a small financial package together, tell them you will go to their attorney and then to yours…anything to make them feel more comfortable.
If you have any more questions e-mail me at www.homebuyeradvice.com
Goodluck and don’t let it get away.
Re: I’m “this” close to my 1st L/O deal, however… - Posted by John (WA)
Posted by John (WA) on December 02, 1999 at 11:12:24:
So…on this one don’t try to get the whole enchilada. Negotiate the most favorable terms you can. If there is not enough cash flow or back end potential to make a sandwich deal possible, then assign it to someone for 2-3K and go on to the next one. The hard part is already done i.e. he’s willing to do a L/O.
Don’t give up. Your current scenario is why we haven’t tried to work with listed properties yet. Something that works for us is to ask the seller how to make this deal work. Then you fix it the way you want.
There are two keys point we always bring up when we run into the “I don’t know if” stall.
You could always lease the home, after all it is your property. But what is your goal: to keep this property an out of town rental or to sell this home? If the tenants tear up the property who is responsible for the repairs? What about guaranteed no vacancies? (Keep an eye on the realtor to see how they react.)
What other offers have you received? Of course, you do not have to accept my offer. However, I am commiting to make your payment today.
This approach may sound rough, but we have learned. We look for the “motivated” seller. If they do not go forward with our offer (after we address ALL their concerns), then move on. The bottom line: There are other deals and, besides, this mortgage is not our obligation if we don’t have a signed contract.