For Sale By Owner

[Guest Guest_puls1234]

As I have been calling FSBO's over the past month the most frequent response I get is " I need to sell this house for all cash because I am building or buying another place." Are others getting that response? I guess it truly does not matter because we are looking for "motivated sellers" and if they are saying no they are obviously not motivated. Look forward to comments.

 

Pete

[-Tony- 0]

First ask them if the have already started to build (when will it be completed). Then try asking them, what will you do if you can't sell your house before your finished building your new one? Than just listen......it might add the extra motivation they need. If not wish them luck tell/ask if you can follow up closer to there move date....assure them you have several programs they might work with their house.

 

Or which to the coop assignment hat show them how you could increase their income.

 

i.e. mtg $700 you know you could get $1100, you just increased there income by $125 a month for there new mtg and gave them $400 cash flow (mtg co will only take 70-80% of the rent for the old mtg payment, so 75% of 1100 is $825).

[MichaelC 160]

Pete, the "I need cash...." response is the most common one that we all hear, I'm sure.

If, in fact, they do need cash it may very well be that anything other than a conventional sale of their property will not work for them. Accept this reality for the time being, and follow up in a month or so.

I always suggest a refinance of their existing mortgage when I hear the "I need cash" song starting to be sung. It may very well put the currency in their pockets they need so that obstacle is no longer. At the same time, with interest rates low, a refinance may also lower their monthly payments. Another good selling point to remind them of.

Now, they have cash in their pockets and can move on with their lives, lower monthly payments, and you taking over those lower payments.

Homeowner heaven......investor ingenuity......I haven't felt this good since my mother in law's visa application was denied and she was barred entry into the good ol' United States ....(it has since been approved and she could show up on my doorstep at any time )

[option8 0]

I agree with Michael...Refinancing is a great option and one that sellers don't often know that they have. They have the additional option of refinancing to an interest only loan! The payment is MUCH LOWER, you can make that lower monthly payment while your buyer gets qualified AND get the additional significant monthly cashflow in the meantime. If you aren't taking the property sub2, you shouldn't too much care about the loan paydown.

 

option8

[-Tony- 0]

MichaelC,

 

(it has since been approved and she could show up on my doorstep at any time)

 

Time to reenforce the stoop I guess

 

 

option8,

 

you shouldn't too much care about the loan paydown.

 

I agree unless you can negotiate the price to Mtg pay off, Still if they left some meat on the bones the cash flow might be better.