Help With A Seller

Comments(8)

• 
  bnorton21st October, 2003

  Is there currently a mortgage?
  If so, what is the principal balance?
  What is he asking?
  What are the comps?
  What is he going to do if he doesn't get the properties sold in time?

• 
  HomeFront21st October, 2003

  bnorton,
  
  Thanks for the reply. Yes there are mortgages on the properties. He has basically told me that I can give him a sales price that will get him the money he needs. He has about $48,000 in equity in the property, but he is only looking for $30,000. The comps are a little bit higher than what he is asking for the property. If he doesn't sell I think he will become an absentee landlord, but he has not given me that information as of yet.
  
  Thanks!!

• 
  ddhamilt21st October, 2003

  Assign the contract or double-close
  find your buyers, hit the streets
  he is super motivated, and now you should be too!
  How long are the leases with the tenants? are they vacating upon selling?

• 
  HomeFront21st October, 2003

  The tenants are long term and they are not moving out after the sale. I am just trying to figure out how this can be a win-win. I am trying to figure out how to get the money he wants and get the properties without losing the cash flow. Are you suggesting to get the 3 properties under contract and then find 3 buyers before we close. If I am unable to find the 3 buyers for the property I will be stuck because I won't have the funding.
  
  Thanks to all!

• 
  ddhamilt21st October, 2003

  yes get them under contract
  have you joined a reia yet
  flyer the hell out of your reia
  ads in papers
  
  put the clause in the contract, subject to financing of partner investors or something to that effect, to protect yourself, but if they are as good as you say, it sounds like you shouldn't have a hard time turning them over.
  
  also, get the payment history of all the tenants. this will need to be a selling point to any potential investor, b/c it sounds like he/she will need to keep the tenants. if the tenants are low maintenance and pay on time, that if another attractive feature of the investment property.
  
  go get them!

• 
  HomeFront21st October, 2003

  Thanks for the help. One more question though...Once I get them under contract and find a buyer what amount (or percentage) do I sell the contract for.
  
  Thanks!

• 
  ddhamilt21st October, 2003

  Whatever you desire. usually depending on the equity. maybe trying flipping them for $3000 a piece to start, or $8000 if an investor will buy all three at once. Don't be greedy, but you deserve it if you found it and present the package to the investor well and all the analysis is there.
  
  Also buy bill bronchick's "flipping properties" it is a great starter book for this. it's only $20.
  
  how did you find the lead? referral or advertising?

• 
  HomeFront21st October, 2003

  Thanks again for the comments. I got the lead from an advertisement in the newspaper. Seller is a really nice guy and is willing to work with me.
  
  Thanks!