Need Help With A Deal
Just need some advise here!
My aunt and uncle are having a hard time paying their mortgage in Atlanta. I would like to approach them about the house, but I know my uncle is a bull head, and probably wont take me seriously, so I'll probably look for someone else to do it. I think that the house is at least worth 125,000. It only needs about 5-10 thousand in repair/upgrades (some kitchen tile repair, and minor cosmetic upgrades). How much should I offer them for it? Or how much would most REI's offer?
Source
family matters are different. I try to stay out of them.
If this was an off the street deal the formula to start would be:
FMV - repairs and holding costs * 65% = MAO. (maximum allowable offer)
There is a saying in sales and it goes like this " He who speakes first loses"
In other words you need ask him this question just like this:
" Uncle Bob, I might know some people who can help. If I were to tell them about your house, what would be the least amount you would be comfortable with me telling them you would take for it?"
This is a well worded offensive question, if you ask it just as stated does several things for you with him only having to give one answer.
If he gives you a price, not only do you know where you are working from, but it also gives you permission to do some homework. It also brings him to your side but gives him the feeling you are on his side
Yea,
I think I'm going to let someone else do it, because I know he wont listen. I just found out that the house appraised for 150. Maybe I can get it once it goes to foreclosure so he wont know its me trying to buy it. The only thing about that is I'll be paying more. I'll figure something out.
Source
I'd calculate the maximum offer a little differently.
(FMV *.65 ) - fix up cost and holding costs = Max offer. You will get a little different number than what you'd get using WheelerDealer's formula.
I agree with WheelerDealer in regards to staying out of family business. There are just too many things that can go wrong even if you have the best of intentions. If you decide to go through with it I wish you the best of luck.
Ryan J. Schnabel
why dont you offer to "buy" the house from them and allow them to remain there as your "tenants".(obviously you'd better not use those terms with your unlce though)
This way they get to "keep" their HOME which you refer to as a "house".
Or offer same as above NOT keeping them in there house and splitting hte deal with them when all is done.........sounds win / win to me. You both may get what you want.
With all the equity he sounds like he may have you could make a GREAT no money down deal with them.
All the best results to ya..........good luck.