DanielSun 7 Report post Posted August 31, 2012 I've just got off the phone with a potential seller... i have to say i did AWFUL! I can't believe how bad I did lol.... but anyways he doesn't sound like a very motivate seller. And It's a condo so i might have to check with the c.a. rules. He does want to see a short offer letter, so, what numbers should i give him? Plenty comparable in the area: 1 bedroom 1 den, 630 sq.ft. price $339,000 to $349,000. (Yeah, that' s Toronto for you.) FMR is mostly $1850 to $2200. He wants to get like $380,000 in 2 years, and asking $1850 for rent. lol i know he is VERY greedy, that's why i think this is mostly just for practice. His rent is fair though. I don't hold my breathe on this one, but I thought if i could show him the numbers he'd gain vs. selling using an agent he'd probably softens his position, who knows. I'd throw him a short offer letter just for kicks. any suggestions? I'm thinking, offer him $350k, $2100 rent per month. That's the highest i would go. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 31, 2012 Daniel, a few things. . . I've just got off the phone with a potential seller... i have to say i did AWFUL! I can't believe how bad I did lol.... You're new at this. Awful is the norm. Relax. It only gets easier. It's a condo so i might have to check with the c.a. rules.A must. There may be restrictions about renting. As long as you keep in mind you're doing this for the experience, that's fine. But otherwise you do not want to waste your time and energy with homeowners who aren't serious and motivated. You won't get deals, but you will get discouraged. As for your offer, disregard what the homeowner tells you he wants. Do your due diligence and make your offer based on the data, not on his emotions. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted August 31, 2012 yeah, my finger is not crossed. hahaha, too eager to get a deal done will only backfire. i offered, 2k upfront, 250 extra rent for 24 months, 348k net end price. total net him 356k, compared to FMV of 345k now. i'll stuff it in my follow-up-in-3-months folder. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted August 31, 2012 yeah, my finger is not crossed. hahaha, too eager to get a deal done will only backfire. i offered, 2k upfront, 250 extra rent for 24 months, 348k net end price. total net him 356k, compared to FMV of 345k now. i'll stuff it in my follow-up-in-3-months folder. That looks like around 3.2% above the current FMV for 2 years. What have properties been increasing in value (if any) for your are the last couple years? Share this post Link to post Share on other sites
DanielSun 7 Report post Posted August 31, 2012 yeah Toronto condo price is on steady increase for the past 10 years. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 31, 2012 What type of lease purchase deal are you offering? I'm assuming CA. For the homeowner to net $348K, adding rent credits of around $12K and anticipated option consideration of $10K, you would be offering the property at $370K. Do you find that to be a market friendly price? Would prospective tenant/buyers flock to your door for that deal? Share this post Link to post Share on other sites
DanielSun 7 Report post Posted September 6, 2012 Thanks Michael. I offered what I thought was fair, he stopped responding. Already put into my follow up in 3 months folder. Share this post Link to post Share on other sites
