Need Creative Ideas On My First Deal.. - Posted by Gary

Real Estate Investing
#1

Posted by Laure on May 19, 2000 at 08:15:20:

Find out what is his main concern. Gettting the loan out of his name? Getting full price? Just getting rid of it. Without these answers, you can’t be good to yourself and make the best offer. Ask him these things when you meet with him. I would spend some time thinking about your answers to each of these needs, and have a plan for each of them mapped out before you meet him. Don’t offer him too many options just to throw them on the table. You have to know what he needs before you can meet his needs. Not what he “wants” but what he needs. Then it will be the best deal for both of you.

I am against making full price offers AT ANY TERMS. Buy LOW, sell HIGH.

Although, my husband says: “buy high, sell low, make it up in volume”. He is a joker. LOL

Laure :slight_smile:

#2

Need Creative Ideas On My First Deal… - Posted by Gary

Posted by Gary on May 19, 2000 at 24:26:43:

Gurus, et.al.,

Need sage advice for first deal. Called back a homeowner who called on my ad. Here’s what I know about the house:

  1. Asking $269,000
  2. Comps from OC Title show $255,781 (bottom of sales comp page )
  3. Has a first of $175k, with a payment of $1400 PITI
  4. Non-assumable loan
  5. Had it listed but took it off market. I can’t remember for the life of me why he did but I did ask. Forgot to write it down. Admitted mistake. I’ll ask him again.
  6. 4B/2.5B 2400 sq.ft.
  7. 0.5 acre lot
  8. Market rent for 4B/3B is $1800.
  9. Purchased home in Las Vegas suburb and plans to move family during summer when school let’s out.
  10. Hot market that is appreciating at 12%/year with low unemployment and 30% affordability.

I have an appointment with him Saturday morning. He’s open to creative offers. Here’s a couple of offers I thought of.

  1. L/O for $265,000 with rent of $1400. Sandwich lease to T/B for $300,000, option consideration of $15k and rent of $2200 with $300 rent credit for first year.
    Profit is $15k upfront, $800/mo cash flow, about $17k backend. Only question is what do you do when seller wants some money up front. Do you offer to make two months of payments upfront?

  2. All cash offer for $200k (not sure where to get the money for that but could ask Ed Garcia). I can then L/O, flip, etc…

  3. Since he already owns another house, maybe I can offer ‘subject to’ with $20k in cash. I can then L/O, flip, etc…

  4. Full market price with terms. But with what terms? Suggestions?

I have no ego in this and am open to real expert thoughts. My current real experience is zip, but have gone through LeGrange L/O, subject to packages thoroughly. Let me know if you need more information.

Gary