How Do I Write This Contract
I have deal. The owner owes $100,000 the properties worth $250,000. He needs to sale quickly. How much should I offer him? How do I structure the deal to get cash back so I could do some repairs. 
Ist rule of negotiating - make him put down a number first. If you offer 150 and he says ok - could you have gotten him to take 130? 110? 100? You get the point. If you make him put a number on the property he may say 165 and then you can reply with 115 or whatever and work from there. Regardless make him show you his hand first.
Check this thread for the repairs - some great options
http://www.thecreativeinvestor.com/modules.php?mop=modload&name=Forum&file=viewtopic&topic=23818&forum=20
You are unlikely to get cash back from the seller for repairs. At least in the situation you are sort of describing.
You might be able to get a loan against the property. If you buy it subject-to you will be a bit more limited.
You could look to refinance after you have title. You did not mention your credit ability.
You might be able to get the seller to get a second or something similar and then agree to leave the funds in escrow. You would do the repairs and draw down against the funds in escrow.
It mostly will come down to why the preson is selling and what you can do. If you can not make the deal work consider selling it on to someone who can and make some money (or partner with someone [ this includes the seller).
Consider a lease/option where the seller funds the repairs.
John
PS. Send me a PM if you need a partner.
It is going to depend on what the seller REALLY NEEDS. Ask him and he'll tell you what he needs and what for. Then you can structure the deal accordingly.
A property with 60% equity is pretty flexible, and many investors would love to help out and get their hands in there.
If you need help stucturing a deal, send me an email, **Please See My Profile**
With that kind of equity your best bet would be a rehab loan based on the ARV. You could go up to 90% with conventioal rates. Up to 80% would keep you out of MI. A 15 year mortgage is around 6% as of last friday.
This would give you one loan and the money you need to fix it up.
As far as making an offer, if you feel the need say $100k. See where he goes from there.
Lori
[addsig]
Thanks everyone for your responses. I will take them into consideration. I am looking for someone to joint venture with on some deals. I come across these deals all the time.
Karen
It is time to put on your salesmans hat and determine exactly how much the owner will take. As time runs down for the owner the price will naturely come down (fewer options) too.
This should be a "win-win" situation for the both of you.
What profit do you need to make at a minimum? 20K~30K? 50~60K
You can purchase outright and perform a cash out refinance. Lenders I work with will allow this type of refinance within weeks of the initial purchase and at the true market value (not purchase price).
If a quick closing is critical to making the deal a sucess and you require a partner to accompish this, please consider me for the position.
-Tim (tim@ntwhi.com)
Addison, IL