Newbie Help - Posted by SteveG_Pa

Posted by JT (CA) on April 21, 2002 at 23:12:47:

It appears though you might not have the workings of a “great deal” simply because (1) you don’t have a motivated seller, (2) you don’t have enough information, per you mentioned that you haven’t seen the property yet.

One suggestion that comes to mind is to simply play “poker face” and don’t give away the fact that you absolutely love the house, if you do end up totally liking it, if you do, you’re prone to be the one being negotiated on, not the one negotiating. Treat the house, or simply think of the house as one that is an investment property, never fall in love with it (common advise on the site).

Moreover, the reason for this is so that you don’t get into the deal way over your head. Keep calm, breathe, and think through the deal carefully. I.e., just because they told you there are no liens, back taxes, etc. on the property, doesn’t necessarily mean that there aren’t. Make sure you first talk to a local title company to do a search.

It may work on your favor to negotiate what they actually want for the home if you can have them carry the financing since you mentioned that it appears that it’s owned free and clear. If so, you can negotiate a term that would work for both you and the seller, and that is a win-win situation, and potentially a no-money down deal.

A lease option might also work but the only thing I don’t like much about l/o’s is the fact that in our state, there are no tax consequences, you can’t write-off your rent, tsk, tsk… but could be great for you if they’re willing to agree, therefore again, a no-money down deal.

Hope that helps.

JT (CA)

Newbie Help - Posted by SteveG_Pa

Posted by SteveG_Pa on April 21, 2002 at 21:14:38:

Ok, the situation is this, a house in a very nice neighborhood with comps between 83k and 93k, its a 4 bdr, 2 bath, good size lot with pool, built in 79’, owned free and clear, havent gone downtown yet but says no leins, taxes, or anything owed on it, owner lives 2 hours away and daughter currently resides in home, but got married and is buying a new home, owner is not in dire need to sell, but was very open minded to a few what if’s…shes asking 89k, her and my wife setup what I think was some great rapport, (talked for half-hour) about her kids, our kids, yadayadayada, didnt get into tons of numbers with her because we didnt want to freak her out, besides, she is more interested in getting a young couple with young kids into the house, than an investor looking for money…so, as a new investor, what would be some good options to think about? Didnt sound like she needed cash but like I said, didnt get into that to much, we are going to look at the house on thursday and wanted to have a few ideas in my head before we talked to her further.

My wife got the feeling that she (the owner) could either sell this property or not didnt really care, just selling it because it has no use, and she sounds like someone willing to share an opportunity to help someone out, especially a young family.

Im open to suggestions…id like to make this look as favorable for her as it is for us, we told her we could bring some information on different types of creative financing so it would be easier for her to understand them, since, after all, we are a young couple just researching on our own, and dont really fully understand some of them ourselves. maybe well learn a little together, lol, as far as my exit strategy, we’d like to live in our first property, be it this one or another, for a few years, and have an option to sell it or l/o it out.

Should we just do a l/o with her? Better Ideas?

sorry was so long with such little real info but…im also just looking for some rough ideas to work on and play with,

Thanks for your replies…

SteveG_Pa