Posted by rayrick on April 08, 1999 at 14:59:51:
The answer to both of the above questions is primarily this: speed without discount. If the seller needs to make a quick sale, he or she is faced with two alternatives: slash the price, or offer attractive terms. Most sellers aren’t aware the latter choice exists. It’s your job to make them aware of it!
You are offering to cover their payments without exposing them to any of the usual landlording headaches and giving them a good likelihood of selling it for a decent price down the road, with no realtor’s commission. And you can start RIGHT AWAY (okay, you need SOME time to find a tenant/buyer, but not a lot).
Your goal is to convince them that this is better than hacking their asking price, or renting it or leaving it vacant while they wait for a full price offer.
If they are not facing any of these choices, that is, they have the time to wait for a full-price all-cash offer, than you probably don’t have a deal.
Likewise, if they need a hefty chunk of cash from the sale to make a downpayment on their next house, you’re probably not going to convince them to do a L/O either.
You MIGHT be able to persuade them to re-fi to get some cash if they have a lot of equity, but if they’re really in a hurry, they might not want to mess with that.