Need Help Structuring This Deal

[mr2monster 0]

Okay, so the house across from me went up for sale. I talked to the realtor on the deal and she told me some things that maybe she shouldnt have. Anyhow, i know now that i can get the house for about 11000 under FMV

 

There are current tenants in the home that would like to stay. They cant buy it because they dont have the credit score to do it.

 

Numbers:

 

on the market for 210,000

Sellers will take 199,000

Agent payback on commission 8000

Tenants ready and willing to stay... they are paying 1050/mo right now but would understand an increase.

 

Basically my mortgage would be ~1280/mo.. i would increase rent to that amount on a LP.

 

 

here is what i was thinking... I tell the realtor that i will use her as my buying agent if she gives me 2% back at close. (seller pays 6% regardless of what realtor sells the home.) I know she wont go for 3% back but i figure i can present her with making 4% on the sale as opposed to 3% if i use another realtor. Anyhow, so this amounts to about 8000 at close. and i am under FMV by 11000

 

The tenants want to stay and are willing to sign a year lease and put a security deposit. I think not! How bout i sign them up on a lease purchase once i own the property and collect a Option Deposit instead! Sell the home (homes in the area are appreciating very rapidly i made 100K in 1 year 2 months).

 

 

What am i not seeing here? I need to JUMP on this if it is a good deal because it just went up yesterday afternoon and its not even in MLS yet.

[MichaelC 160]

A few things come to mind. First, if you do decide to move on this property, don't take the Realtor's word for what the homeowner will accept. If, indeed, their bottom line is $199K, offer $190K and up your offer grudgingly.

Second, you seem to be taking the existing tenants word as fact. They may have a change of heart, and then where is your alternate plan? Can you afford a vacancy of $1,300/mo if that were to occur?

Finally, I think your offer to the Realtor is a good one. Doesn't mean she will accept it. But, I think if you present it favorably and she isn't blinded by doing things the "traditional" way, it just might fly and make this a win/win.

[Sold ! 0]

Monster,

 

Good advice from MC.

 

Also, if you're willing to accept 2% back from the realtor, why would you make that offer to her? Offer 1% and let her win the round by "talking you up" to 2%. ya never know, she might accept 1% and you just made some good jingle without doing a thing !

 

Cheers,

[Brian - L.V. 0]

Also, if you're willing to accept 2% back from the realtor, why would you make that offer to her? Offer 1% and let her win the round by "talking you up" to 2%. ya never know, she might accept 1% and you just made some good jingle without doing a thing !

 

I understand what you're trying to say, but it doesn't really make sense. He's offering to use her as his buyer's agent and in return she gives him 2% of the sale price back (she's makes a 4% commission instead of the 3% she'd make if he got his own agent.) Even though she's giving him a "rebate" at close, it's still more than if she had to split. If he offered to use her with and additional 1% of the sale price back (3% instead of 2%), she might as well just let him get his own agent.