can i ask for a discount?

General Real Estate Investing
1

hi all

i’m looking at a property that is 118,000 but it has been on the market for a while. it is a 3bd/2ba 2 story home with a 4 car garage built on 2 lots 220x110 each…i want to offer 100k all cash, is this offer to low??? The property is “estate owned” does that change things?

                                       thanks for all the past and present help ;D
                                                       rheebaby
2

Are you embarrassed by your offer?

If not, it’s too much!

I would go in even lower than that! What will the property appraise for? How much repair is needed? Where is the property?

Those numbers MUST be known and factored into your offer!

Keith

3

rheebaby,

    I just bought one today appraised value $225,000.00

I offered $160,000.00 CASH and close in 4 days the owner came back at 170,000 and close in a month I said 165,000 close in 4 days with 2 months FREE RENT!! Owner Sold!

No your offer is not low!

4

dam Robb, you’re a hustler…LOL

5

We use that theory here at R.E.O. Consultants

“You do not get what you deserve… You get what you negotiate!!”

Here is a deal I bought today!

Assessed Value: $ 194,900 Previous Sale: $ 164,500
Land Value: $ 61,100 Sale Date: 6/15/1999

Property Type: SINGLE FAMILY Year Built: 1955
House Style: RANCH Garage Type: CARPORT
Square Feet: 1,118 Car Spaces: 1
Bsmt. Sq. Ft.: 1,118 Fireplaces: 1
Fin. Bsmt. Sq. Ft.: 838 Heat: FA
Bsmt. Type: Cooling:
Bedrooms: 4 Lot Size: 6,882
Baths: 1.75

Comp sales

11/1/2005
$ 235,000
1374 S BENTON ST
RANCH
1,080
1,080
270
3
2.25
49
ATTACHED
1

11/18/2004
$ 200,000
1337 S CHASE ST
RANCH
1,118
1,118
559
4
1.75
50
CARPORT
1

10/13/2004
$ 215,000
1320 S DEPEW ST
RANCH
1,596
0
0
3
1.75
49

0

10/1/2004
$ 211,500
1307 S CHASE ST
RANCH
1,118
1,118
1,006
5
1.75
50
CARPORT
2

8/16/2004
$ 220,000
1380 S CHASE CT
SPLIT LEVEL
2,000
0
0
3
1.75
47
CARPORT
1

2/27/2004
$ 210,000
1318 S CHASE ST
RANCH
1,118
1,118
894
5
1.75
50
ATTACHED
2

2/26/2004
$ 200,000
1354 S BENTON ST
RANCH
1,080
1,080
1,080
5
2.25
49
ATTACHED

12/17/2003
$ 219,000
1364 S BENTON ST
RANCH
1,080
1,080
1,080
5
2.25
49
ATTACHED
1

9/9/2003
$ 218,000
1356 S CHASE ST
RANCH
1,118
1,118
838
5
1.5
50
CARPORT
1

7/22/2003

Bought it cash for 160,000.00 needs carpet and paint about 5k in work I guess I have not nor am I planing on seeing this one!

6

When you guys say “all cash” does that mean you write a check for the entire balance? Does it include financing, HML, etc.

I never quite understood EXACTLY what it means…all cash.

7

I not really sure of the meaning of “all cash deal” either
lol…but in this case my hml will send all the money to a title company for the whole amt. and that is where we will do the deal…that to me is kind of all cash…i guess
lol

                                                        rheebaby
8

I agree. That certainly sounds like “all cash” to me. It also sounds like 100% financing. Do you find 100% financing hard to come by, with no down payment?

I’m in New York and the first words out of the realtor’s mouth is how much do you wan to put down. We don’t want to put anything down, but then we risk not being taken seriously. We’re new investors; we don’t have money. Where do we get a down payment??

9

honey…i’m a baby mouse in this rat race…i’m poor…the only money i ever put down is “Earnest money”…and that is very small…a couple hundred…no more…i’m a newbie…my money doesn’t grow on trees, bushes or anything else at the moment!!! LOL

                                                  rheebaby
10

Robb, I’m curious as to how you are able to close in 4 days. Is it the right connections of loan officers, appraisors, inspectors, and title companies?
Oh, and although I’m new at this, I look at offering a discount of 15-20% off asking price (even when the asking price is already 20% below market).

11

if i’m not mistaken robb has one heck of a network…lol
he has everyone at his fingertips!!!

                                                          rheebaby