Hello All:
I’m ready to purchase a distressed property to rehab, but another investor already has an offer on the property with Right to First Refusal.
I’m prepared to offer up to $10K more, and after talking with the owner, I’m fairly confident that she would prefer to sell to me rather than the other investor.
Does anyone have any creative ways to get around the Right to First Refusal?
Thanks in advance, the owner wants to have something done within 48 hours.
If you offer 10k over his offer! They will refuse his and you are in 99.9% of the time! OR you will end up in a bidding war!!!
you need to know more about the first right of refusal terms. It probably sets very defined conditions.
Bottomline is, your offering more money probably has NO bearing on the terms of the contract. At best, the other investor might have to match (or be $1 above) any offer, but he could offer an equal an equal amt and get the property. This is why is called “First right of refusal”
MG577,
Glad to meet you.
There are a few things that you said that lead me to believe you are being “worked” by this owner, such as she would prefer to sell to me, right of first refusal and something needs to be done in 48 hours.
Sounds like you need some advice on the art of negotiation rather than how to get around the right of first refusal.
John $Cash$ Locke
HA! You’re probably right! Thanks for the advice.
I spoke with the owner last night, who ended up telling me that she has absolutely no documents in place with the other investor. Turns out his offer and his Right to First Refusal all took place verbally in a 15 minute conversation.
The reason I said I thought she would prefer to sell to me is that she has an emotional attachement to this home, and the other investor wants to chop it up and turn it into a duplex. I get the feeling from her that she would rather see me make it pretty again and sell it to a family. I dunno, I guess I have to take it for what it’s worth.
Your advice is appreciated. 