Posted by Brent_IL on September 13, 2003 at 14:00:12:
Jon,
This is an opinion, but I think your approach is inside out.
Generally, the time to place bandit signs is after you learn to recognize a good deal. It?s definitely prudent to learn how to write an offer that will document your intentions before meeting with the seller. How will you convey your idea to the seller if you can?t clarify the concept to yourself?
All of your information is coming from the seller. He may be incorrect about some, or all of the facts. You have to know the rental rates for that type of property before you can forge an exit strategy. Compare two-bedrooms to two-bedrooms.
Taxable value is only relevant in determining your tax bill.
From what you?ve said, the seller stated that he owes $35K and wants to sell for $45K. How did you make the leap to a CFD or wrap? Do you have a down payment that is significant enough so the commission savings would sway him?
If expenses are in line, the low payment structure is nice. Refinancing could further reduce it.
You?re operating in a vacuum. Get all the real facts about the property. Talk to the seller to find out what it is that he needs. Then explore the ways that you can give it to him while making a profit.