Holy snarkys, I’ve been mailing some tax default lists here lately and this seller calls me. He’s old, he’s tired, and he’s disabled and has had not received a payment in 3 years… :shocked I’m going to take a gander at this property in a few days and if the numbers fit these tenants aka freeloaders are about to lose there free ride. So what the best way to market this? Tenets in place lol?
Honesty is the best policy. I’d tell the buyer they’re going to have to go through the eviction process, which will incur an expense and/or possible more damage to the property than there already is. Look at it from the buyers perspective, if you didn’t tell me about the situation, I’m never buying from you again and probably telling some of my deep pocket buddies what happened as well. And like that…you lose $5 mill in buyer money…
And give the seller the option to give them a swift kick in the nads on the way out LOL.
Not being dishonest frankly. They are more than likely non performers because they know the old and can’t boot there ass. Either way I’m going to get a huge discount(under 50%)anyway so the buyer will be quite insulated. In this market getting a house at below 50% is a steal so long as it is structurally complete.
Man I have hit a unlucky streak here lately. Within two weeks the seller has become non bed ridden, paid his taxes, contacted his son from CA, and is not interested in selling and going to evict his tenants. Like holy turnaround batman.
That time I got a call from a motivated landlord that never received a penny of rent for yrs also.
It was his son, this poor guy tried to help out his boy, after all they had kids and they deserved a break.
He was going to sell it to me and let me deal with the dastardly son.
Then later he changed his mind, of course, wat a mess.
These people are always surprising me. Like 3 years non payment and he can’t meet me because he is bed ridden then bam all recovered. This was a address off of a tax default lists as well so he still owes that money as well. His price went from yeah I will take 14k to its worth 30k all in one week.
I believe it is important to include the interest of the owner in your deals!
You must treat your owner as a partner on the rehab and offer them a good deal in exchange for getting some of their equity and doing the work. Clearly, he is too old to do the work and the tenants were taking advantage of him. To plan on walking with all of the owner’s equity because he is too old to do the work himself has you taking advantage of him as well; bad Karma and not likely to end well.
Had you done this, you would have built a great relationship with your owner and subsequently his son rather than losing the whole deal.
Be a good capitalist. There is plenty of opportunity to go around.
This is terrible advice but you’re entitled to your opinion. As a great man once said Sellers are there to sell and Buyers are there to buy. No one is taking advantage of the other. I sleep very well because I’m not using jedi mind tricks. I’m simply asking and sometimes telling a person what their house is worth to me. If you think that’s being dishonest then you shouldn’t negotiate even a cup of coffee.
Obviously, you have no idea what you’re talking about.
I realize you have a degree from Rainbow and Unicorn University, but the reality is, you get what you negotiatate, not what’s fair. Unless you define what’s ‘fair’ as what you can negotiate.
If Grandpa can’t lift a hammer, much less feed himself without help, it’s pointless to insist that he participate ‘somehow’ in the capture of his potential equity. If he could have done that, he would have.
Meantime, sweetie, it’s not the investor’s job to leave equity on the table, because somehow he’ll manufacture some positive Karma for himself.
“Leaving money on the table” means buying cheap enough that the next buyer will want the deal.
Otherwise, ‘leaving money on the table’ is the same as ‘peeing all over the toilet seat.’
I once got a call out of nowhere and had an angry girl tell me I was lower than low for taking advantage of people in foreclosure. I told her I was helping these people save their credit and giving them some money for a new start. I suspected she might have been in pre foreclosure.
I asked what she did, she tells me she was a stay at home Mom with a husband in the military.
It was my turn to attack. I told her all these military people are sucking off of the American people, money that cud be used at home to help our citizens in need. And rebuild out bridges and roads and give jobs to us.
She tells me her husband is helping keep America free. I told her “oh really”, you believe the propaganda they feed you? there are no weapons of mass destruction, there is nobody invading our country, it’s these military aholes that need to keep a war going to keep the Huge profits coming in.
Oh man we got into a big discussion or you might call it a verbal battle.
I wasnt able to get her to see my point of view, but it sure was fun rattling her cage. She was quite upset when she hung up.
I also think this is the perfect example of a millennials idea of capitalism. Hate to break it to you but you don’t make money off of hugs, kisses, and sharing in a capitalist market.
Wait! Yes, you can. My girlfriend Kandy Kane says lot of people make money off of hugs and kisses and a few other things… Yes, it is a whole 'nother niche of capitalism that’s illegal in 40 states. :shocked :biggrin :cool
:biggrin :biggrin :biggrin Now that’s a job you make the seller a partner. Well for at least a hour or so.
I wonder if Karefree has done any deals with the method she describes. Making an old guy a partner on a fixer he can’t afford to repair and is not psychically able to do the repairs?
I’m sure he wants to negotiate a price he can live with and be done with it. That’s how I help my sellers.
To involve this ill owner in a rehab project cud potentially shorten his life with the added stress and dealing with it all.
I suggest she grab Toto and go directly to Emerald City and live happily in her fantasy world.
To create good Karma, pay the homeowner an amount you can both agree on, and everybody is happy.
What kind of sorcery is that? :beer
Some try to offer the lowest amount they can. I have talked to people going to foreclosure who had about $80k + equity based on current market. They were bitter and allowed the home to go to auction. Bitter because they kept getting offers of $1000 to move on. We would have given her $18-20k. Not everyone is cutthroat. You can still make a profit.
That’s not common. What’s common is a homeowner that won’t accept any amount for their equity. They are in denial, or worse, they can’t stand to see anyone actually make money off their situation, despite saving their credit, and/or receiving less than all their perceived equity.
In my opinion greed and stupidity gets these homeowners into the predicaments they’re in, and greed and stupidity keep them from getting out of their predicaments. These people lie to themselves as much as they lie to those who can help them. Why? Because sellers are liars.
My favorite seller is the one that takes time out to call you only to stonewall you the entire time and act like you are the tax man trying to take their money. I usually end those calls quickly.