Motivated? How Motivated? - Posted by Pete

Posted by Pete on July 19, 2003 at 21:06:41:

I would say they are not motivated if they are sniffing at a full price offer like that. I would answer their questions and basically say take it or leave it. (in a nice way). I wouldn’t fool around. If they are not ready to deal, fine. Here’s my card, give me a call if there is anything I can do for you.

“Then if they call in a few weeks or months you KNOW they are motivated. Offer them a deal only not as good as the first one.”

I appreciated your input…really! …and guess who called me today? Yep…The people I met with last night! They want to have another look at "subject to"
Ha! The only prob I have now is to get some basic contracts lined up…Guess it’s time to see an attorney?

Thanks again.

Pete

Motivated? How Motivated? - Posted by Pete

Posted by Pete on July 18, 2003 at 20:58:59:

Well; I actually got my foot in the door to talk to a FSBO!
Step one; right?

I’ll try to keep this short.

The seller has about 9K in equity 'IF" they get their asking price. So far they told me all they’ve had were some low ball offers; probably less than their payoff…They listened intently as I attempted to explain to them Lease/option and or “subject to”

After all this the husband spoke up and I quote " We just wanna’ drive by this place in the future and say; hey look, that used to be our house"

Here are the particulars if needed:

Asking Price: $101,900
Still owed : $93,000
Their rate : 6.5%
PITI: : $740
My offer:

  1. Buy at full price.
  2. $3,000 down X amt for the next 60 months till full equity payoff. Pay off the loan at this point.
  3. Monthly rent to seller: $800

Hmmm? Seemed like a good deal for them.
Good for me too as I have a tenant/buyer lined up for 5K Option Consideration; $1050/month rent…sell at $115,900

They wanted to know what else…so I hit 'em with “subject to”

Essentially my sellers asked a good question that I also have to ask myself! Why!???

1)Why would I want to stay on a loan when I am trying to buy another home?
2)Won’t that cause the bank to say I am over-extended?
3) How do I know the people you Mr. Buyer; are renting to, won’t “de-value” my property?
4) If you decide NOT to buy, then I have to re-list etc and try to sell the house again!

Is this simply a case of these people are NOT “Motivated” enough? Are we as investors asking the seller to be “investors” too?

Any input would be greatly appreciated.

Pete

Re: Motivated? How Motivated? - Posted by GL - ON

Posted by GL - ON on July 19, 2003 at 14:39:27:

You may have confused them by trying to explain too much. This sometimes starts a long rambling conversation and causes them to think up all kinds of questions. You have to keep to the point.

So, is someone else offering them full price all cash?

I didn’t think so.

They are lucky to have you, I wouldn’t offer them as much. And I have gotten my share of deals too.

1)Why would I want to stay on a loan when I am trying to buy another home?

Like they have a choice

2)Won’t that cause the bank to say I am over-extended?

They tell the bank the house is rented on a long lease (to you). The bank adds 75% of the rent to their income so what they are paying out vs. what you are paying in cancels out. Their ability to borrow is not affected.

  1. How do I know the people you Mr. Buyer; are renting to, won’t “de-value” my property?

Because you are a professional. You take full responsibility so they don’t have to worry.

You carefully check out and qualify your tenants. You don’t rent to bad tenants.

You also get a large deposit which covers any damage. And in the case of severe damage like fire, you are covered by insurance.

  1. If you decide NOT to buy, then I have to re-list etc and try to sell the house again!

That’s right so what have they got to lose?

I have been very straight forward with these answers so there will be no misunderstanding. You can possibly put them in a more diplomatic way. But you may find that being honest is the best tactic. A straight answer often satisfies a questioner when some half baked weasel answer only makes them more suspicious.

I would say they are not motivated if they are sniffing at a full price offer like that. I would answer their questions and basically say take it or leave it. (in a nice way). I wouldn’t fool around. If they are not ready to deal, fine. Here’s my card, give me a call if there is anything I can do for you.

Then if they call in a few weeks or months you KNOW they are motivated. Offer them a deal only not as good as the first one.