I need help with some creative offers for a property I really really want but the owner won’t come off price much. It is appraised for 175,000 and thats what he’s asking for it. I will have to scrape to get a downpaymennt up and he said he would owner finance for 12%. I wish I knew of some way I could make offers to him that would interest him. Any ideas. He says he doesn’t have to sell it but wants to.
Then he isnt a motivated seller…move on and find another deal. You could be sitting there trying to get him give in, while other deals could be available and taken by the time you are done.
You can’t force a person to sell.
It doesn’t matter how much you want it, he’s not in the mood to give it to you at a bargain price. You are not permitted to beat him until he signs the deed over (nor tie him to the railroad tracks)
For someone who isn’t backed into a corner, his offer isn’t unreasonable. If he is going to carry long term paper, he can get his price, and a good interest rate. If you can offer all cash, you will get a better price.
It’s only when people are desperate to unload a property that you will get a super bargain— and if they have to unload, they are not very likely to carry paper for you.
If you knew what he wanted, you might be able to work out some sort of deal where everyone gets what they want. Maybe some sort of 3 way trade.
Or find some place to come up with the cash to make a cash offer.
But realistically, my suggestion is to give him your card an tell him to give you a call if he decides to come down a bit. Then you go out and find something else to buy.
I agree, move on. This seller is just dicking around with you. As an investor you want to find sellers who are very motivated and need to sell by a certain deadline. If he has time to kill he’s wasting yours.
Asking full price, you must get a downpayment, he wants 12% interest, and you are considering it? There aren’t any creative ways to buy it. Maybe a lease option with fixed price and rental credit and hope property value goes up, but I would definitely skip it. Go buy one off of the MLS much cheaper.
If you absolutely have to have it because you are in love with it and want to live in it as your primary residence, then keep working.
For any other possible reason or scenario - move on - no deal.
I just absolutely love it and he has a barn and 8 acres of pastures for my horses and I lease next door now. How much would you guys lease purchase for or monthly. The property value is going up fast, alot of horse farms being built all around area, land here is high . This is sc He had it listed for 185,000. He only bought it for the 1/2 acre store on front of property. He has reduced price to 175,000 in the last 6 mths but says he won’t go lower but i want to offer him something that would be feasable for both of us :banghead :help :banghead :help
Buying full retail value in a falling market at 12% interest? I thought we were investing here not throwing money away. Buy LOW sell HIGH. :banghead
Here’s what I do…word for word…
“I understand your position Mr. Jones. You’re doing exactly what I would do in your situation. I’m not going to be even close to your asking price and I don’t want to waste your time. Here’s my offer…
I will pay $125,000 for this home, AS IS. No warranty, No Inspection, No banks involved, ALL CASH! And, I can close 5 days after you accept. This is what I want you to remember Mr Jones…You have $125,000 sitting in a bank RIGHT NOW!!! All you have to do is pick up your phone at anytime, and ask me to bring it over. Remember what I’m telling you.
It might be 2 weeks, it might be 2 months, if you change your mind on that asking price, my money is ready for you. Just call me and we’ll close this deal and you’ll have $125,000 in YOUR bank account!!”
This is a beautiful little psycological game. By implanting the thought of $125,000 just sitting somewhere waiting to be picked up it creates a thought process in the sellers mind. The money is there, the money is there… every idiot who comes to look at that home and complanes about the carpet, or the kitchen, or the bathroom, will get you closer and closer to that deal. I have had people call me 6 months after making that exact offer and ask if it’s still good. Don’t screw around with these folks, unless the market has drastically changed in 6 months GET OVER THERE THAT DAY. Have them sign and set up that closing.
The beauty of this method is it just lays out there. You never spend a minute more of your time negotiating with these people. They however, can and do, spend a lot of time thinking about that money just sitting there.
For you new guy’s. The NO Bank involved part is up to you. I use it even if I fianance the property because NO SELLER is walking out of a closing because a bank is asking THE BUYER to sign some papers. As long as that check is there you have a deal!!!
Thankyou Thankyou, I love your honesty and pray I can say something brave like that. I wanted to give no more than 137,000 but he says he doesn’t have to sell. I am going to work up my nerve to make him a cash offer. :smile
ps: fdjake can you still move houses in this market cause I just bought a home for cash that has tax value of 40,000. I am asking 25,000 and I gave 7000. and called 3 I buy houses to sell at a discount and none have called back with an offer yet and its been 5 days. :bobble
ruready. I am not sure you are ready for real estate investing. You said a real estate investor curse word. You love the property. If you love the property and really want to live in it it is your home and not an investment.
Not only that but you are dealing with a totally unmotivated seller. If you want and love this home so much haggle a little and see what you can pay for it but don’t expect that an investment forum will be able to give you the magic formula to get the owner to roll over and give you a deal.
Is everyone here advertising… I have to say at times I am but my goodness… How about some advise from time to time…
Dick and Jen are right…this is NOT a motivated seller! For the real bargains, you need to find those that DO have to sell!
Keith