Great REI Potential - Please Help Newbie!
Hi everyone,
I've been afraid to get into REI, but I think I may have a great deal here. Could you PLEASE help me get it rolling.
3 BR, 1.5 BA twnhs in Longmont, Colorado for $149,900. asking only $500. down. The daughter moved from CO to CA and place is vacant. Dad owns RE/Mortg company in CA & is trying to sell the place for her. Dad said the "seller would be willing to pay closing costs". Both daughter and Dad have CA area code phone numbers, so they might be motivated sellers.
The last county appraisal (06/02) was for $156,600. The deed in the daughter's name appears to have been released (04/02) and she has no liens on her name.
I am interested in buying my 1st home & I didn't know what else to do, so I acted like I was interested in this place (both are true, but I don't want this place personally). I am set up to go look at the place on sunday at 1pm.
Could you folks please advise on how I might proceed, especially since the Dad may think I want the place personally. I'm thinking I could do a L/O, but I'm not sure what words to say to get the ball rolling in that direction. Would you reccommend something other than L/O?
I know I could buy the place and rent it, but rent is really slow around here now, plus, that is NOT using "opm".
A Billion thank yous to Anyone who might be able to help out.
Sincerely,
Brandy 
Ok, perhaps it's not a "great" deal, b/c every REA is offering no down/no closing cost loans right now...and the dad IS a REA.
I'm wondering if there is a deal here, b/c they are selling for lower than what it was appraised for & they are out of town. If this was a FSBO, I would say there IS L/O potential here. Since there isn't a 3rd party REA w/ a contract to sell, this isn't necessarily NOT a FSBO either (i.e. perhaps they'd be willing to try something less conventional).
I apologize for responding to my own post, I just wanted to clarify the "Great" part... a bit overzealous.
U2s5thmember,
Since your post is an older one I just saw, you may have already acted on this deal. Sorry for the late reply but I've been out of town.
You may want to check comps on the property as the county appraisal may not be very accurate. Then, if you think the numbers say it's a good deal you may attempt to get the owner to provide owner financing at a reasonable rate or explore the possibility of taking the property Sub2.
The lease option method works but you have stated that the property may not be easily rented right now. This may hinder your efforts to find a tenant buyer.
Also, be upfront with the owner as to your role as a real estate investor. A motivated seller has one thing in mind and that is to alleviate themselves from the property. You will find a stronger position is had in negotiating when you are upfront from the start. Good Luck.
Dave
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