Negotiating The Price Down
Anyone have any normal procedures for negotiating your accepted offer down? I put an offer on a 4 unit multi-family which was 15K less than the asking price. It was accepted. Now I have a home inspection today and I already know at the very least that the roof needs to be replaced. Now after the inspection I at the very least intend on pulling the cost of the roof, security deposits and any other work that may need to be done. Anyone have any advice on this I definitely want the place but, have no intentions of paying for a new roof without cutting down the price.
James
in the future, just for my knowledge cant you put this a s a contingency??
As of right now the deal is down to $30K from asking with a $5K concession for me. Basically I will need about $8000 to get this deal done. Still in escrow hopefully it works out.
[ Edited by birchman2 on Date 02/04/2006 ]
Quote:
On 2006-02-04 14:52, birchman2 wrote:
As of right now the deal is down to $30K from asking with a $5K concession for me. Basically I will need about $8000 to get this deal done. Still in escrow hopefully it works out.
<font size=-1>[ Edited by birchman2 on Date 02/04/2006 ]</font>
The deal seems to be in your favor now - run with it!
Deal was done and at $35K less than asking with $5K concession. First deal and a 47% cash on cash return. No complaints so far.
Every mortgage I have had, has an interest rate in effect for the period the payment is for. All excess is applied to principal, whether it is $1 or $1,000. The lender only has the right to the interest agreed on, all other $$ will be applied to principal.
Some lenders do not automatically apply excess payments to principal. Citi just recently did this to me in December by trying to apply the excess to the next months payment. I received a statement not due to a couple of months.
Quote:
On 2006-03-07 15:44, pmatheson1 wrote:
Every mortgage I have had, has an interest rate in effect for the period the payment is for. All excess is applied to principal, whether it is $1 or $1,000. The lender only has the right to the interest agreed on, all other $$ will be applied to principal.
Contact the loss mitigation dept.
Loss mit would have little if anything to do with these properties.
You need to find the REO department of the bank and see what is going on with these particular properties. Loss mit generally only appl;ies to preforeclosure
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Better yet attend your local REIA meeting and find someone that is doing what you want to do. At our meetings I frequently find people that lend on these types of deals.
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