Let’s close these two and Make some … - Posted by David Alexander
Posted by David Alexander on March 22, 2000 at 11:46:35:
Ok, Sparky, glad your off and running. Your making the first mistakes that you make when you start.
The first mistake I see is your not talking and Listening (with emphasis on listening) to the sellers long enough to find out their wants, and then get down to their needs.
The second is just knowing how to make One kind of offer. You’ve got to learn as many ways possible (tools) to make a dime in this business as you can, leaving the other guys with only one type of offer.
Realize that the only time you start making offers is either when you have an idea of how your going to structure the deal, or when you’ve exhausted yourself and the seller isnt giving you any info, so you then make offers “you like” to see if you can get the seller to move or respond.
NOW here goes, go back to the sellers and sit down and talk with them find out what they are really wanting, and what they are really needing.
Example that pops up in my mind is both of these sellers seem to be stuck on price. If so give it to them.
But get your terms.
Maybe offer the first one 105k Cash, with 55k cash now, and 50k cash in five years.
Do Not mention interest or anything, word it just like that.
My exact words or ususally. I’d like to buy your house ,but do you have to have all your money now? (pause and shut up) Now you will find out how long they are willing to wait on the rest of their money.
So your exit would be either to sell with Owner financing, rent and liquidate in five years, or if they countered with say a year you would just concentrate on a straight sell for cash.
To get the 55k cash you would either use hard money, or take over payments on the first and create second mortgage to another Investor for the other 22k cash, should be a slam dunk because of such a good LTV.
The other property would work pretty much the same way.
A good book on making offers is Wade Cooks, 101 ways to buy Real Estate.
Go buy these houses.