What Are My Options For This PreForeclosure
I have a preforeclosure listing that was posted 10/2/2004 ( yesterday).
The outstanding balance is $47,650
tax value: $174,000
What are my options do you think to enticing this owner in preforeclosure to contract with me.
1)I have about $50,000 upfront and available within a week and could close within two with an investor lender. I would think to try and purchase for $100-110,000 depending.
2) Try and purchase for about $80-90,000 and satisfy any other outstanding OWNER debt up to $20,000 beyond purchase price (if indeed any debt did exist).
Beyond this what incentives or creative and expeditious methods could I offer the owner to enter a purchase agreement with me. With this type of equity I wouldn't mind contractually agreeing to forgo a $10,000 deposit to secure the owners signature.
Also:
a) I would also need to know how I could search the title to check for any other liens BEFOREHAND.
b) In what manner should I present myself to secure the owners trust.
(i) I am a 20yr British / American guy that can shake the bane of youth and inexperience.
I would however want to present myself in the least vulcher/ poacher -investor way. Instead playing to my youth that I am indeed a college student who is simply looking for a reasonably priced dwelling and happens to have a large amount of cash reserves to close quickly & satsify the owners debts.
In this approach can anyone offer any complimentary approaching tecniques because I know that with the listing agent being of some competence he/she would have advised owners to stay clear of our sort.
I know I could go via lease purchase agreement or contract for deed giving owner large downpayment, but essentially I would wanna short sale for the return of sizable capital.
I have owner's telephone number but phone just rings, I am wary of an agent however trying to negoitate higher terms or deal breaking terms .......should I dismiss this concern and go to an agent 10/04/2004 (tomorrow) to beat out other investors if I cannot reach owner today (10/3/2004).
Please ALL, offer your queries so I can give you more details and I discuss what I should do next.
Plano Texas, you are very close by. I live west of Frisco and commute to Richardson frequently.
My reference to demeanor is to circumvent any coaching the busy little listing realtor has given this owner. My youth is of no concern to me, my thoughts were to use this to my advantage in gaining the owner's trust. To convey that I am not a heartless investor but instead a willing and able buying not intent of swindling them of their equity.
Short of offering the FMV the alternative is to negoitiate this with the owner so as to permit adequate margin for profit, in exchange for a quick closing and possibly satisfying any lesser debt (credit cards, small loans e.t.c)
Should I approach this question of an asking price or let the owner state his price; negotiate down from there with necessary concessions and incentives. If the latter is to be the best approach what incentives are reasonable and in what ways can I opt to strcuture a creative deal.
I am confident it is in preforeclosure much else needs to inquired into.
Thanks much for response we should talk, we live so close. Forward me an e-mail /private message sometime.
I think i'm slightly confused. Is the house listed with a realtor? I understand the need to make profit, however, just offering half of the market price isn't going to do anything but waste fax paper. You need to find out what the owner's problem is and solve the problem. If you solve the problem, you will get the house
My email address is on file, feel free to email me if you have ?'s as I don't mind lending a hand.
Oh, and you should try and find out what the owner thinks his house is worth and work from there. There are several ways you can depreciate this price. I'd also look into subject-2 to acquire this home, as it would probably be the least trouble.
-Chris
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Okay I've passed you along my contact details, I'd love a chance to speak with you.
Hope your e-mail address on file is current!
I'm just curious. To all the people who posted replys, given these particular stats, what would you do with the deal?
Also when dealing with pre-forclosures, isn't tax value typically 15-20% less than FMV? I remember reading that somewhere...perhaps I'm wrong. Thanks
>isn't tax value typically 15-20% less than FMV?
Not in Dallas County, which is usually pretty close to 95-98%. Tarrant County is usually at FMV or slightly over.
-Chris
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