Posted by Tim on December 22, 2000 at 19:43:26:
Leave them your card but don’t leave an offer. What if you find something better and you can’t afford to do both?
Give them some time to stew a little and check back with them.
-T
Making Offers - Posted by Shenesa
Posted by Shenesa on December 22, 2000 at 14:30:23:
I just came from viewing a piece of property that is in need of some rehab. I took a contractor with me to give an estimate of the needed repairs. The house is a two family 2 brs on each flat with bath. the house is located in an area where the houses sell for 50k and up. The rents are 400-600 a month. This property can rent for 400 a month. However, it needs work, mainly cosmetic. There are also a few cats that have moved in and the house reeks of cat urine and poop! However, to make this house more marketable and to get your money out of it, the contractor suggested turning the house into a 1 family and renting it for $650 It has very low ceilings. I mean I stand 5’6’ 1/2 and I can reach up and touch the ceiling on first floor. The bathrooms/kitchen would need to be modernized and opened up. However, the guy is asking 24k for the house and is only willing to take 23k. The house has no mortgage on it. It was a relatives house that passed and relatives don’t have time for it due to distance. I would like to offer the guy 15k and then assign the contract to another investor to let them worry about it.
My question is, if the owners are not willing to negotiate, is it necessary to leave your offer just in case they become motivated later on?
The figures are:
offer 15k
assign 2k
=17k
fix up 8k
sell 50k
-25k
profit 25k
OR
Keep 2 family
Get financing for 23k (17k+8k=25k) @8.5% for 15yrs=$226.49
Taxes are 1100 = $91.67 a month + $30 a month for insurance=348.16
$800-$348.16=451.84 cash flow tenants pay own heat
rent both units out for 400 each=800
Sorry for the long post.
Your thoughts,
Shenesa
Re: Making Offers - Posted by dewCO
Posted by dewCO on December 23, 2000 at 18:43:12:
Make them the offer that works for you and put a limit on the response time. Not more thatn a day or so. Then they have IT in writing and can back to you if they change their mind. I woulnd’t leave it wide open, ever.
Is this low ceiling stuff NORMAL for this area and are you using comps that have the same “problem”. I would think all else being OK that this is a detriment and would make the house worth less no matter what condition it is in. Strange and weird properties are always a little to sell.
Re: Making Offers - Posted by Mark Richmond
Posted by Mark Richmond on December 23, 2000 at 09:52:55:
Remeber the “RULE” your price my term,your terms my price
Re: Making Offers - Posted by CurtNY
Posted by CurtNY on December 22, 2000 at 19:57:53:
Shenesa,
I agree with tim, you should definately make the offer and if they’re not interested now leave your card. If they don’t call you, be sure to check back once a month until they sell it to you or someone else. Good Luck!
CurtNY