Bocky33 0 Report post Posted March 25, 2003 Seller divorced & needs to sell. Current listing expires at end of month. First =74K; Second =13K; appraised 6 months ago for 98K; seller asking 96K. (Yes, I need to pull comps)Offer: 90K with no option consideration - since I will have to spend my money to find and qualify buyer.If comps suggest a value of 98K then I advertise and sell for 102K with $3000 down and offering $100/mo rent credit. Thanx for any/all replies. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 25, 2003 Hi, Bocky. This deal sounds workable a number of ways.As you already noted, yes, run your comps to determine accurately the value of the property and what you can expect to receive monthly.The seller is asking $96K while listed with a local Realtor. Which means that a full price offer would net this seller about $88K, (that's factoring in the usual six percent Realtor's commission, and another 2% for the typical seller's closing costs). Seller owes $87K. Obviously, cashing out is not the concern here. It's a matter of getting the payment off his/her back so they can move on to whatever their plans may be. I would offer $87K. You can always go up from there, if need be.Same thing with the monthly payments. Offer to take them over.Length of lease? What are you looking for? Longer is better. Can you get 36 months or more?As for the other side of the equation, yes, depending on the property you can probably get a purchase price of $102K. Maybe even $105K. You give terms, you get price. Don't forget that.Option money down......$3K sounds reasonable in that price range. I like to receive the equivalent of three to six months rent as option consideration. Sometimes I'll be surprised and receive more. Other times I have to accept less to make it work. But, that's my goal.Rent credit...........$100 out of how much rent? $100 out of, say, $1,000 isn't going to attract much attention. I always opt for a generous rent credit. Makes the phone ring, makes the tenant/buyer behave better, puts the property on auto pilot and allows me to forget about it and move on to the next deals. Share this post Link to post Share on other sites
NickC 0 Report post Posted March 25, 2003 Are the payments current on the mortgages? Who exactly is on title? That's who you'll need to talk to. Why not offer to just take over payments? Offer 87k? And yes, I wouldn't offer any option consideration; if they're motivated, your services will be plenty!Due your due dilligence, any other liens? Just my thoughts though.Nick. Share this post Link to post Share on other sites
