Need some input.......please. (LONG) - Posted by Jim IL

Posted by Jim IL on April 01, 1999 at 01:57:10:

Hello all,
I have a seller that is “somewhat motivated”, and is asking for me to “help” her.
I will give you the scenario, and see what ideas anyone might have here.
The seller is a close family friend, so I need to be sure to “do right by” them. (which we do anyway to strangers right).
SFR, 3 BR, 1 Bth, Full Basement, approx. 1300 sf. CA, Central Heat, 2 Car att. garage, nice landscaping, in “middle class area”. A typical “bread and butter” home.
Value: $135k-$140k
Asking: $135 (will sell to me for $120k)
No mortgage on home now, FREE and CLEAR!
Needs NO repairs.
Seller has already signed an “option” to purchase a new construction TH to live in for retirement years, (now).
The TH price is $123k, and seller wants to put down at least $100k. (I can most likely talk her into less, as long as her new payments are small, and/or she makes up the difference from the sale of old home)

The home is listed presently, but since the seller is a close friend, they have given ALL the details and motivation ques. (she showed me ALL her paper work from both the agent selling her home and her “option” on the new TH)
Seller states that unless the RE agent gets an offer at asking price($135k), they will NOT sell thru the agent, and want to let the contract run out.
The contract with the RE agent expires in 30 days.
New TH is scheduled to close 10 days after.

Seller has said that IF they do not sell with the agent under these terms, they want to sell thru me, and get at least $120k, and does not care if I get above that.
In fact, she said that she would be “delighted” if I could help her sell and make a profit for myself. (why else would I do it?)

Since the $120k figure was mentioned quickly, I feel as though IF I can do this deal quickly, she will take less, but not much.

I know that I can and just may offer an “option” only at the $120k or less, and attempt to sell the home for more. No loss or risk to either me or seller.
The only “problem” here is that I’ve NEVER marketed a home retail, and frankly, it is a “Buyers market” here now. So, terms will obviously sell the home faster.

But, I wanted to ask here “what” else is possible to accomplish the end result of getting more money to me, and getting the seller her $120k or close?

So, PLEASE, Fire away.
I do intend on calling Legrands “hotline” tommorrow, but as you can see, it is late, and I’m up thinking about this.

So far all I’ve done are “wholesale” deals, and am stuck analyzing this deal. I just finished all the other Legrand modules, so I do feel I understand the “other” options available. I just want to structure multiple offers to give the seller more of a chance to accept.

I was wondering, is it possible to have the seller “take back” the ENTIRE amount, and then sell at a discount to get her “needed cash”? (the sellers only concern is getting her CASH to buy the new TH)
Would a note buyer purchase a note with a face value of $120k-$130k based on a home only worth $140k tops?
And at what kind of discount?
Also, how fast will this “note” sell?
We need this QUICK, and I do not want to lose a possible deal, for lack of ideas.

I am also sure that the seller will allow me to do the deal “no money down”, because she likes me, and only wants her cash for the new TH. She could care less IF I have money into the deal or not.

Sorry this is SO LONG, but I’m nervous, and want to make a good deal for all involved.

Who knows, maybe we can all share the info that comes back and learna new trick or two. That is the value of this board?

Thanks in advance,
Jim IL