My First Motivated Seller - Posted by Heather

Posted by phong on August 21, 2003 at 20:35:42:

I don’t think that’s a motivated seller there…

My First Motivated Seller - Posted by Heather

Posted by Heather on August 21, 2003 at 20:27:01:

I’m a newbie whose been actively looking for my first deal for the first time this week. I’ve read and studied and am gearing up to take the plunge. I came across my first motivated seller today but I hesitate to do the deal because I’m not sure that the numbers work. Here’s the scoop:

Seller is asking $218,000. I belive it’s worth approx. $225,000. Willing to do a wraparound (she only owes $42,000) but for no longer than 12 months and wants no less than $10,000 down. She will not budge on the down payment. Debts payments= $1116. Expected rent=$1300, which I’m not sure leaves me enough cash flow for expenses. Plus the large amount that she wants down represents about 1/3 of my working capital which I’m a little uncomfortable with.

Is there an opportunity here that I’m not seeing? Thank you for the advice.

Re: My First Motivated Seller - Posted by Tom-FL

Posted by Tom-FL on August 23, 2003 at 14:45:10:

>> Seller is asking $218,000. I belive it’s worth approx. $225,000.

Well, 225,000 X .7 = 157,500.

I would suggest starting the bid at around $140,000 and see what happens. If the house is in good shape, you should be able to get around 140-150k hard money, and have her carry the rest.

Re: My First Motivated Seller - Posted by Nate(DC)

Posted by Nate(DC) on August 22, 2003 at 11:08:56:

the reason you are not seeing an opportunity is because there isn’t one…

NT

Re: My First Motivated Seller - Posted by Clair-MO

Posted by Clair-MO on August 21, 2003 at 21:54:16:

Heather, She isn’t motivated enough! How long has the property been on the market? You might try to become a FRIEND to the seller and see if she would be willing to discount some of her asking price. Will the lady be willing to take back a second mortgage for 20% there are several creative methods you might be to do but I would need to know the numbers. I like the wraparound mortgage idea but it has to be more than 12 months rather three or four years. What you need to do is ask questions of the lady such as what is the reason for doing a wraparound for 12 months? What is she going to do with the money she receives from the property? Is she going to invest the money in money market funds for high yields of return of interest? Find out what she is going to do with the money you give her and there is a way you can get the down payment without using your own money. If interested in knowing more please feel free to contact me through email or the chat room in the evenings after 9PM.

Re: My First Motivated Seller - Posted by Matt (Ontario)

Posted by Matt (Ontario) on August 21, 2003 at 20:51:56:

A motivated seller is somebody who needs to move NOW and is happy to sell his/her property as a discount. If I had $10,000 to invest, I would spend it on advertising so I could find motivated sellers, then get a house under contract at a discount and turn around and flip it to another investor.