My First Appointment, Help!
Hey gang, ive been observing this site for some time and have learned so much from so many. Thanks. I am a new investor. Have read much and finally put in an ad to buy houses. Well after a few realtors, etc. i got my first anxious seller tonight. I have a 9am meeting at the kitchen table tomorrow. the details: wife lost job, they want to move to texas. He bought as fixer three yrs ago. Has put in some money doing repairs. states 3k needed to finish bathroom. 1550sq but says another 250 sqft additon not known by county. 4br 2b on lot zoned for mutiple units, not sure of size. He owes 132k, pays $1050mo, says RMV about $165K. He wants payoff and $10k. I have no money to pay him. Thought about subto deal where i get him to pay 1-2 mos mortgage then i take over and will pay him his 10k (or whatever i negotiate) when i sell. Or could i L/O it? Seems like there might be some room for higher monthly payments. Or do i get him under contract for 24-48hrs while it consult with my "partner" and try to find another investor to flip it to? Your input would be greatly appreciated. He says he will sell to first guy who makes him an offer. thanks. 
Then make him an offer. Take over the payments and give him 1 or 2k, the other 5 or 6 or 8 when you sell. Do a L/O for a year. If it sells in a year, great. Otherwise l/o again and get another 3 or 4 down and do it again. Give him a promissory note for the balance.
The main thing though is to find out what he NEEDS and fulfill it.
Hi, I too am a new member to this site, I would be very skeptical about the addition, I might approach him with a contract that ties him and you to the property, subject to county approval of the addition. Otherwise you could end up in a world of red tape and inspections paid for by you.
Hello!
I would simply offer to take the property subject to the original financing and give him $1,000 to $2,000 to help him move; then only way that I'd give him 10k is after the sale (minus what I gave'em up front to move with).
Before I'd do the above, I'd confirm what his mortgage is by looking at the paper work. If that looked good, I'd get him under contract till your "partner" could look at it. I'd then go over to the county and search for liens. Any liens would come off the 10k, minus the up front money.
I'm right in the middle of a sub to right now.
Hope the above helps,
OnTheWater
Thanks for the replies. It is helpful to hear from experience.
I met with the owner this morning. First meeting jitters but i think it went pretty well. He stated "the other guys i have talked to give me the feeling of being slick operators, but i have a good feeling about you." Well i doubt anyone who knew me would call me a slick operator except in fantasy football. lol
He seems open to the subject to deal. His demands for cash dropped to $5k. Even seemed amenable to 1-2mos where he pays mortgage.
Property is a bit rough around the edges, but it seems sound. Additions (family room off main, and 4th br) seem well done, tho once again it is not permitted with county.
Existing loan is at 9.25%(bad credit) at $1050mo. Seems reasonable to consider a L/O for $1250-1350 for a year or two.
Interesting thing is this is the middle property of three parcels smack in the middle of a business district. He states that a developer offered him $148k two years ago contingent on getting the other two properties. It fell through. Other two properties are in worse shape than this, but opens up the possibility of aquisition down the road? Or maybe i am biting off more than i can chew in that vision.
So now i am at a decision stage. I should buy john lockes subject to course, because i am unsure how to proceed. What contracts, etc. Will have to research. Thanks again to all who responded and any further thoughts would be appreciated.