shane 0 Report post Posted August 15, 2005 I called FSBO sign I saw posted up in a window of a side street yesterday. The owner of the house is a "senior" is what he referred to himself as. He recently had a heart attack and wants to liquidate his RE holdings as they come available. He told me every dime he has to his name is currently held up in RE and he's worried due to his health condition. He seems to be a pretty sharp and defensive guy. He did mention that he would be willing to finance the property for many years (upwards of a whole amortization) but would prefer a cash sale. He is asking $88k, which to seemed like a great price! Its a side by side thats about 30 years old and still has the original furnace and hot water heater. Basement isn't finished and does not have a garage. I pulled some comps for the property. Unforetunatly there were only 3. The 2 most simalar properties sold for $104k in June and the other $97900 in March. Now right there it seems that I have an under valued property on my hands. I could be in a position to option it and assign it for a quick profit. (I'm going to view the property tomorrow, so I'll know exatly what condition its in) The problem is, like I said he's very defensive. He was burned by owner financing before so he wants to be able to "come after" me if anything goes wrong. He stated that a couple of times. I don't want to end up in a huge legal battle over a couple thousand dollars profit. Is it even worth my time to deal with this guy? Is he going to cause me problems? Oh yeah, the only advertising he is doing is in the window. Its only a small for sale sign thats barely visible from the street. (Its a good thing I'm always on the lookout for them!) If I should continue to try to make a deal, what is my best approach? Thanks Shane Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted August 15, 2005 Shane,I would, damn this is a funny post...man, sorry. I have to start again... I would try to cash him out if there's a deal there and you can do it. Also, if that's a good move for your market. I don't know. A lot of people are all talk. Do things right and you should be okay. Sounds like a thousand other pissed off (too) seasoned investors. He's probably just threatening you because he has dealt with too many new investors that couldn't do what they said the could.I'd still be hesitant though.....I think.Just don't let anyone push you around. It's like a fight; show confidence with the willingness to work with him. If he continues to be a jerk I would kick his..move on to the next one.Regards,Adam Share this post Link to post Share on other sites
draegarfrog 0 Report post Posted August 16, 2005 Tell him you are concerned about his health and if he "comes after you" he might have another heart attack. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted August 16, 2005 Tell him you are concerned about his health and if he "comes after you" he might have another heart attack. That was worth repeating!!! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 17, 2005 Shane, don't prejudge this guy. His bark may be worse than his bite. First things first: is the property a deal or a dog? Do your due diligence, and once you have some firm numbers, we can assess the entire package, including our senior friend. Share this post Link to post Share on other sites
shane 0 Report post Posted August 17, 2005 Property was a dog, but the old man was great! Everthing I thought at first turned out to be exactly the opposite. The old guy was hardly intimidating with his baggy light blue pants held up by some falshy suspenders hanging a couple of inches from his sweet velcro shoes. No but seriously, he was a really nice guy. He said in 35 years of real estate he only got burned once and that was by the last guy that he helped out and held a 2nd mortgage for. Now he's trying to protect himself. As for the house, it was not nearly even close to what I thought it would be. It needed about $10k of work to get it up to par. Not something I want to get into. Actually that leads me to a question. Does anyone here do CA's on fixer uppers? Do you do any work on it before you move it? Let the T/B fix up some equity? Or totally avoid it altogether. Shane Share this post Link to post Share on other sites
draegarfrog 0 Report post Posted August 17, 2005 If there was enough equity and I could get a BIG discount, I'd just do a straight option and advertise it as a "Handy Man Special" For sale as is. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 17, 2005 As draegarfrog said, a Pure Option is one possibility. Negotiate the best price you can, lock up the property for some agreeable length of time, and then find your buyer. That's certainly one possibility.And, yes, CA's with this type of property are a good idea, also. Why not? Advertise the property as a Rent to Own handyman special, shout about the 50% rent credits, and I'll be mighty surprised if your phone isn't ringing off the hook. Let the t/b do all the work. Your hands stay soft and clean, you don't need to worry about contractors, cash expenditures, etc. Share this post Link to post Share on other sites
