verbatim 1 Report post Posted March 31, 2010 You get the following call: Daughter looking to sell her 85 year old mothers 1000 sqft 3 bed 1 bath home so her mom can move in with her. They are moving 45 minutes away and daughter does not want to leave the home vacant in deteriorating area. She will not sell on terms, cash only. There is no mortgage on the home & it comps at 65k. Daughter's asking 45k all cash in 30 days with $10 earnest money or 5k non refundable earnest $ for 90 day contract. Needs cosmetic repairs: new paint inside, carpet, & kitchen cabinets. What do you do? Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted March 31, 2010 How much can the property produce as income?Is a lease option type of deal the only deal you want to make? If not and value is 65K then figure out what you can pay to hold as rental or if you want wholesale.Talk to daughter about having an income coming in each month and you would take care of taxes, maintenance, and insurance. (have them carry the mortgage) Share this post Link to post Share on other sites
verbatim 1 Report post Posted March 31, 2010 How much can the property produce as income?Is a lease option type of deal the only deal you want to make? If not and value is 65K then figure out what you can pay to hold as rental or if you want wholesale.Talk to daughter about having an income coming in each month and you would take care of taxes, maintenance, and insurance. (have them carry the mortgage) This would have to be a wholesale deal as both mother and daughters health is in bad shape. They are not open to terms. The numbers arent really attractive enough for a flip though if I'm looking at it correctly Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted March 31, 2010 Make an offer on the property that you feel that you would be able to flip it to an investor for.Don't get too worried about what the daughter is asking for. She probably has not had any offers. Share this post Link to post Share on other sites
jlspartz 0 Report post Posted March 31, 2010 To flip to an investor figure ARV*.70 - Repairs - Wholesale Fee (Your Keep). Or Current value with no repairs*.70 - Wholesale Fee. That's your maximum offer. Try for a bit lower first. It will seem extremely low, but that's what you need to attract a rehabber to buy it from you. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 2, 2010 It's unlikely anyone is beating a path to this woman's door. Make you offer based on what works for you. Cash is king these days, and your offer should reflect this. Have two exit strategies: a flip for a quick profit, or a buy and hold for cash flow. Share this post Link to post Share on other sites
rpraderas 0 Report post Posted September 16, 2010 I'd tell the daughter good luck selling w/o terms. Unfortunately, the market rarely complies with our wishes. Share this post Link to post Share on other sites
rzillowman 0 Report post Posted September 17, 2010 I would suggest trying to sell it to a real estate investor. These are typically the folks who pay all cash. Share this post Link to post Share on other sites