My name is Tara and I’m a member of REICLUB. I’ve been reading many of your postings and it seems as if you’re seasoned and good at what you do so I would like to get your opinion about something. I started trying to get my feet wet in real estate a little over a year ago and met my mentor, Clair McManigal, and learned many things from him, but he became ill some time ago and has been ordered by the doctor to rest. Here’s the situation:
I contacted a couple back in Jan about a house they had posted for sale for $101,500. I approached them about doing a lease option on the property and they contacted me and said they would do it for 18 months with $3,000 down and $825 per month. I think that’s a little steep so I stepped away. Well here it is June and the home is still advertised for sale for the same price. I went to the county assessor’s website and got the following information: The purchased the home for $85,000 in July 05. The assessor’s appraisal on the home is $91,460. I believe the couple purchased another home and currently have two mortgage payments. I want to contact them again about doing a lease option on the property. How should I construct this deal? What I want to do if I get the property is put someone in the home and let them cash me out of find someone that will buy it from me sooner. Thanks in advance for your input.
Offer them 200 dollars back of market rent on the monthly, offer them a sales price that is back of market value, you already know the price in which it won’t sell for( the one they have it listed for) offer maybe 500 for option money, 2 year lease with option to extend for one year, twice or two times.
You are an investor who plans on making a profit so start making offers that work in your favor.
If they don’t accept move on, find a motivated seller…that is how you make your money.
Can’t make a bad deal fit the good deal mold. Move on,
:biggrinHope this helps, Darin
About a week ago, I sent you info on a property that I’m pursuing. The owner contacted me this afternoon and wants to discuss a deal by phone in the morning. She’s asking 101,500(the appraised value) for the house and hasn’t been able to sale it and it’s been on the market for months. She took out a second mortgage on the house. She currently owes 86,000 on the house and her payments are about 850 per month and the rents in the area are about the same as their payment now that they’ve refinanced. She stated that she really needs some type of cash out of it. How can I make this a win-win situation with a possible little or no-money down approach? Thanks in advance!
You need o find ot her motivation… bottom line! WHy does she need to sell? Why does she need this money? Every home owner is going to tell you that they need cash.
If I were in your shoes I would first find out why they need to sell. If they are not motivated then they will not be open to yout creative offer. They don’t sound motivated if they have not budged on their FULL MARKET price!
Situation and motivation are the keys to EVERY deal. Find out those answers and I will help you put this deal together.
Mark Parker
Just what is it that you would do with this house if you had it? It’s a loser as a rental and there’s no room to wholesale it…
Keith