Hello all, I am meeting with a motivated seller tonight. He has a property listed right now for 137,900. and the house is worth about 143. He has been off and on the market for about 4 years now and has about 2 months left with the agent. He wants to sell the house and move back to his home state. I spoke directly with him and we are meeting tonight for a walkthrough. My first question is, do I need to have his realtor present? When I make the offer, who do I make the offer through (signed contract)? I understand his realtor is going to want his 3% and his realtor will get paid off, but just how much of the realtor do I need to do deal with? Any and all help would be greatly appreciated!!!
How motivated can he be? He’s been on the market for 4 years already.
As for the Realtor, that’s between seller and Agent. It doesn’t concern you.
I would contend that if the property is worth $143K and listed for $138K, he’s not terribly motivated…if he could see fit to sell for $86K - 100K, he’s motivated.
Keith
Or, get seller to do a lease option.
I would agree with idhomebuyer…about the lease option if there is little to no equity. You want to first go for the wholesale deal if there is enough equity in the house to do so. If after talking to the Motivated Seller he won’t go down to the price you need for the wholesale even after giving him the pain of loss “well Mr. Seller, the price you want makes me uncomfortable and I can’t agree at that price, I also only have enough funds for a couple more deals this month, and am meeting several different people this week. So if we can’t agree on a price tonight, I can’t gaurentee that I can purchase your property. You do want to sell right? Is that the absolute best price you can give me…” and just be quiet…don’t say a word…after he gives you a price, bring up all the repairs and that you’re going to close fast and follow with “is that the best you can do” once he stops you stop. Now if he is not at your wholesale price. Tell him that you are sorry but you can’t agree to purchase his home at that price. Now pack up all your stuff and start walking out the door. Then right when you are walking out the door, turn around and say “Hey Mr. Seller, what if we set up seller financing and I would be able to get you the price you are looking for and put a couple thousand dollars in your pocket…is that something you would be interested in?”
If he says yes, explain to him that you are going to set up a WRAP of his existing loan or of there is no loan write up a note on the property for several years and give him a couple thousand dollars. Now you go market the house for 10K with seller financing and no credit check. This only works if there is no loan, or a GOOD LOAN. 30yr fixed low interests and the payments are around that of your local rental market.
Hope this helps. Good luck
offer to buy his deal sub2 and owner finance it out.