Thinking about making first offer. - Posted by Charles

Posted by Charles Kirkendall on February 08, 2002 at 10:34:26:

Well I made the offer, but changed the terms a little to:

Purchase Price: $160,000 (lower than my original)
Down Payment: $0 (lower than my original)

Owner financed at 4% with balance due in 5 years (originally I was thinking 5%).

The great thing is that they are actually thinking about it and asked for an extension of the contract deadline. This could mean that I will be able to get it for around my original offer.

Thanks for the help,
Charles

Thinking about making first offer. - Posted by Charles

Posted by Charles on February 04, 2002 at 15:08:05:

Hi everyone,

I have been reading posts on this site for several months, and am ready to make my first offer. Any advice or suggestions are welcome.

Here are the details:
House is listed with agent for $169,900 in a very nice neighborhood. Comps (from my own research and from my realtor) are going for $190,000 to $200,000. The house does need updating (new carpet, wall paper removal, etc…) which I estimate will cost about $5,000 to $7,500.

After repairs I think I can L/O it for $1600/mo (comparable rents are $1350 to $1500) with an option price of $200,000 with 5% for option consideration.

The house currently vacant and has no outstanding mortgage. I was thinking of making the following offer:

Purchase price: $165,000
Down Payment: $5,000 (~3%)
Owner to carry 30 year mortgage of $160,000 at 5% interest with balance due in 5 years.

Thanks for any input or advice you can give me,

Charles

Re: Thinking about making first offer. - Posted by jim

Posted by jim on February 04, 2002 at 22:08:47:

as far as the agent making trouble, that’s probably true, so try to get her on your side by telling her what you do (investing). say you’ll use her to sell after you rehab the house, unless you’re firm on L/O-ing it. and just be up-front, sort of, tell her some slightly inflated fix-up costs and some slightly deflated cash flow expectations and show her how that’s the only way you can make this work.
or … make your offer a little thinner and let them negotiate you back up to what you were going to offer in the first place. at those terms you still have a decent deal, so you could work with them a little too; maybe pay more but trim the interest rate and extend the balloon payment to ten years.

anyway, good luck. hope you make your first deal and it makes you money.

Re: Thinking about making first offer. - Posted by tony

Posted by tony on February 04, 2002 at 16:45:18:

charles

your offer looks good. the only thing that may hinder the deal is the fact that thier is a real estate agent involved. other then that good luck
let me know if the offer gets accepted