Posted by Brian M. Powers(MI) on January 31, 2002 at 10:40:51:
Thanks so much for sharing your deal with us! This is what makes this site so valuable!!
BMP
using an idea from morrongiello - Posted by ccreia-nc
Posted by ccreia-nc on January 31, 2002 at 07:54:16:
I was looking at a 3/1 in my area that needed very little cosmetic work. Maybe 3 days working at the property and 2k in money. The listing price through the agent was $36,000.00 and the listing she said " Let us know what our seller can do to make you buy this property." This property with that little clean up and paint would easily sell for $59,000. So I made an offer of $27,000.00 paid $15,000. at closing and a $12,000. note secured by another property intrest free for 3 years with no payments. He countered at $21,400 due at closing and a note for $8,600 paid at 8% for 4 years.
So now I know how much cash he needs so I countered with $22,000 and a 4,000. note paid at 18% intrest payments only starting June 1st. He accepted.
He said even though the price was lower than the first offer he liked the 18% on the note secured by the property we were buying.
So I have 2 options…one is I already have an investor that will give me the full $36,000. Paid 25,000 at closing and $1,000. a month payments for 11 months. He is going to sell the property anyway so the payments isnt an option.
Option #2 is work my but off for 3 days and either auction it for sell it for $59,000. with me owner financing some of the down payment.
My point is Michael Morrongiello did a deal with alot more cash out and even though I do this full time and did over 20 transactions last year you can never quit learning in the business. Ive been in a rut making cash offers or owner financing offers but sometimes you forget that a little of both is a good thing as well. Think out of the box and I hope everyone learns alot from this board as I do.
HMC
Just a quick tidbit… - Posted by David Alexander
Posted by David Alexander on January 31, 2002 at 13:22:10:
To get owners to accept No payment, no interest options…
All you do is simply… Dont mention interest or payments… in fact dont mention terms in the first throwout of the negotiation.
Just say 15k at closing and a note for 12k…
Let it sink in… He then counters with 21,400 and 8,600… You then counter with 22k and 4k… again at that point when they have agreed you say ok that’s how will right it up… and you put something like 4k due in 5 years… let them get excited about that and they’ll forget about interest… and then you might settle on 3 or 4 years… no payments/no interest or both.
David Alexander