Should i pure Option this?

[DeeLight 8]

Ok so here's what I got today. I received a positive email from him on 8-2 and sent him the 2nd email. He emailed me this morning asking how come I hadn't replied to his email----a bit of motivation there I would say.

 

So I sent it to him again and told him that maybe he had missed it the first time

 

Here's his response:

 

OK Melodee, i rememeber your initial mail now, yes. have had severe family emergency, still ongoing, so im sorry for not remembering who was who, in responders to the ad.

 

Your service/business sounds great, a win/win for all concerned, yes? So whats the deal - what does a property owner do?

 

in my case, i NEED some option money/down payment, etc - i cannot do it for zero down. More than glad to finance a portion of it for the right, serious buyers, but due to urgent needs/deadlines, I cannot waste time w empty roads, salesmen, or flaky buyers having nothing now but hoping to find a way. Do you have some serious, qualified buyers out there, who can pay 10-20-30% down, and can handle the other costs, i.e. a principal and interest payment for whatever amount i finance for them?

 

What about other carrying costs, i.e property tax?

 

It appears you guys fill a great niche, being that many people's credit got wiped out in the recentr recession, yet they have assets, cash, income, and the ability to pay.

Please let me know how WE can structure a deal that will be a win for me, the buyer, and you as well.

 

So, he get's what I do but needs more. Michael says to act according to the seller's needs and adjust the plan of action. I'm wondering what the consensus would say of this possible venture. I was thinking a pure option, market it like heck and if it doesn't sell let him know what the potential buyers said. At least he would have some market feedback----and who knows it could actually sell.

 

yes, no???

[<Steve> 82]

My take is that he doesn't fully understand what you do and the advantages you can offer. If someone can put 30% down they could do a staight purchase. Why is he selling? Why does he need so much down?

[DeeLight 8]

Steve,

The only thing he told me so far (in emails) is that there is a dire incident in his life so he needs money right now.

 

I will just talk with him tomorrow since he has asked twice. I'll see if I can get more info.

[MichaelC 160]

Melodee, he sure is motivated. My question is how realistic is he? 30% down on a lease option? Never going to happen. Ditto 20% and in all likelihood, 10%, too.

You know the drill by now: get the details: realistic FMV, rental rates for the area, his mortgage details, and we'll go from there. Do it today.

[DeeLight 8]

Thanks Michael,

I'm waiting for a call back from him; should be soon. Will update when I've talked with him.

[DeeLight 8]

Ok here's the latest update, an email saying:

 

"Do you mind telling me what you propose? What is the cost and net to me of any deal you procure?"

 

I told him that I won't know if we have a "deal" until we speak for a few minutes and I do some due diligence. I told him there is no cost to the seller for what I do.

 

He seems motivated and at the same time controlling. Kinda like, "help me quick and do it this way----give me money fast"!!

[DeeLight 8]

K, here's the update on this one. Yeah he's wanting to do something.

 

His email just now:

 

"Sale price $598k. Existing 1st of $300k , existing 2nd of $24k, ins $55/mo, prop taxes i think about $400/mo. I need to at least rake out or redyce that $300k 1 st, cos it's private money @ 10%. There you have it. How can we help each other?"

I haven't had time to sit and ponder this cuz I'm at my job til later. Just thot I'd post it here for you brilliant minds that know easily what to do with financing.

Thanks!

[DeeLight 8]

k, I don't have a clue about this deal from the numbers aspect. The property is amazing. I think the owner is stuck and I don't know if I can give him enough to stop the bleeding.

 

I'm not attached. Any ideas . . . input?

[MichaelC 160]

Looking at it as a CA is probably the best approach for you, Dee. Assuming his $598K asking price is legit and his $324K in liens is accurate, he has equity enough to get a deal done. The sticking point will be how much is he needing/wanting upfront?

Realistically, you can expect between $15K and $20K option consideration. Half of that, (at least), is yours. The $10K or so that goes to him is a far cry from even the 10% he was seeking. But that's the reality and it's your job to make him understand and accept it.

So, where are we with this? What is a realistic value of this house? Is his $598K asking price on target? And what will the property rent for? Once we have those figured out you can proceed with a Short Offer Letter.

[DeeLight 8]

Thank you Michael. I am waiting for an email from him with the addie so I can check on things. I'm also supposed to talk with him.

 

I don't think a l/o the way we do them will work for him because he need too much money----like yesterday.

 

We'll seeeeee

[DeeLight 8]

O K this guy is nutso and a control freak too.

 

Here's what he just sent me to my request yesterday for the address to the property----which he doesn't seem to want to disclose.

 

"Melody, i am still waiting for the answer to my original question, which is what is the cost and or the net to me, if doing one of your deals.

I know over 300 realtors, many dozens of lenders, appraisers, REO mgrs, attorneys, etc and have been IN this business for 35 years....i dont need anyone to run more comps, or salespeople leading me down a long road to find hidden surprises at the end, i dont have time or interest for that.

Please save all the trouble and work, for now, and tell me what your deal is- cost, fees, etc- using a hypothetical number for my house. Okay? Go with $575k, $500k, or $600k, or $650k if you want- pick ANY number- i dont need to hear that there are many variables, i already know that, so PICK some variables to use in your EXAMPLE - give me 3 dif examples if you want, or more. I dont care, i NEED to see how YOUR DEAL plays out on the various buyer/ down payment scenarios you expect or have seen. So just give some examples using a number for purchase price, sane fir interest rate, and term. I kbiw you can do this , so please do so now just give me the bottom line here, whats your deal, how does it work.

If theres a way we can benefit e/o great !

Thank you

Roy"

Unless someone can give me good logic not to leave this guy in the dust, I'm outta here

[MichaelC 160]

WooHoo! Another California kook for the books. Yeah, he is definitely in the trash bin. Just wish he had revealed himself fully when you first started talking. No matter what you say or do it won't be acceptable, so don't even bother, Melodee. He knows 300 Realtors? Then he needs to call one of them and get his house sold. He's "IN" this business for 35 years? Why the hell is he bothering you then?

Next!

[DeeLight 8]

OMGosh Michael, my thots exactly. Reeeealllly if you know so many experts then, PLEASE< don't let me waste my time. And I am going to send him an email that says, "what the heck arre you wasting time talking with me then. You should definitely ask one of your experts and get er done!!" LOL

[ErikOk 10]

What a winner! How did you find this nut?

[DeeLight 8]

Yuppy, Erik, a super good lesson in not being attached to "gotta do a deal!!" Too funny.

 

I got him through emailing for fsbos. Not great prospects coming in but it's good practice.

 

I have found better responses to the emails sent to Oklahoma over So Cal! Hmmm not surprising but we'll see where it goes in the end.