I Need to Divide the Deal in Dallas! See What Awaits!

How do you propose I present this deal to a cash buyer. Show me how The buyer will make money. Ac and roof are around $7500 right. How is this a deal?

Michael Mangham
Mentoring/Teambuilding Nationwide
MD Home Acquisitions LLc

to list with a realtor and they will prob have it sold in 6-9 months.

You need to get it for no more than $50,000.

cant pay them $98k because you can just go down the street and buy a foreclosure for $50k

where did you get your comps from? if these are accurate comps, then your deal is not a good deal. An AC unit will run you about 3K, and a roof about 5K, if you add that to 98K, that gives you 106K; now add your fee in there, closing costs, holding costs, and you're already above your comps.

The seller doesn't sound very motivated- more like a homeowner who wants to sell at retail value.

Wishing you success,

....But I realize this isnt a deal at 98k although that's not to say a cash buyer wouldn't be interested; I've seen some interesting things done so nothing is impossible even at that price, but of course not to me.

So in my hast to help the sellers, perhaps a buyer in Dallas maybe able to go see it and talk with them about Comps in the area, etc..... I am in the process of working on 3 deals as we speak and the homeowner is very time consuming due to lots of talking.... So If I were in the area. I would assign it I'm sure, seller wants to put a face with the voice. This has been going on for 3wks plus .....and

FYI Realtor was NOT successfull, I've explained the foreclosures in the area, yes your right Michael. Long story short,my thoughts perhaps birddog it to anyone interested. I hate writing, sorry if this doesnt make sense, perhaps a call would be best. So PM and I will give lots more Contact and we can talk info!

Actually The Roof looks good,(just a guess that it may need repair/replace)
Ac is works good verified with seller but just been long time so there might be issue, just being realistic.
This is a MOVE in REady Property from viewing the PICTURES on line!

I would lock at 30% that would be my goal.

Seller is Asking(realistically she wont get it) 98,000-45,000=53,000
Split with Seller Would give each of you 26,500
Great Buy and Hold Property.

So, just so I'm clear I'm not wanting to lock at 98k,negotiating I think I could do the above but since I live around 900 miles southwest I dont think I can do this with the seller being very trusting (?) she wants someone to see it... I told her I could put her in touch with someone....
(I already have some response from craigslit.)One retail cash buyer.
So maybe this isnt at all the approach some would take or maybe I'm off on my numbers any advice would be appreciated!

ARV/FMV= 111,000
Repairs= perhaps some touch ups paint/cleaning (light cosmetics)
108,000 ARV/FMV

Thats right Lane, hahaha I've tried that.....and not out of the question.
I'm thinking letting it sink in a bit might see the light.

Need to work on my Buyers lIst in Dallas and Houston!! This is great, hope my deal gets accepted in Houston/Lake Jackson! If so this one will be locked low,handyman special!

Thanks Again,

Moving on their price? They are not that motivated enough if they want that much.

I think she understands she isnt getting 98k After giving her the foreclosures in the area news as you stated....So I cut her off long ago,becuase she wasnt realistic. But I think by her calling me couple days ago, she maybe ready for a deal. Perhaps someone else sees a potential deal in it, you never know. I cant just give up! I dont want to give her the offer yet and close the door because maybe someone she can actually see and talk to in person may just make the deal instead. So birddogging it makes more sense.

Sounds like the seller is wanting to NET $53k. I'd find out what they want the $53k for. Is it to pay off bills, go to Vegas (tell them go Red 7 - LOL just kidding) or are they looking for a little pad / perhaps to assist retirement, etc. Then find out if they had to have all at close or could they carry? How much are their payments? Are any delinquent? Answering these types of questions will guide you better as to how you may be able to assist.

Meaning are payments low enough you can cashflow and sandwich OR can you co-op LO, (create terms and wholesale the deal to a tenant buyer if not enough room to cashflow but still reasonable rent rates)

Can you structure a wrap (wraps work great if they don't need cash NOW. and you can show them how you can step in cover their existing mortgage and if they carry back say $20k (so you (or buyer) in a $110k(est) turnkey property at $65k) at a nice interest rate (that makes sense in the deal and allows the end buyer to cashflow) that if they amortize it over say XX years how they will actually be getting a return of 1-2x the original principal amount wrapped they THEY get paid back each and every month.

Also explore the 4.42 acres. Is that angle workable? Meaning can the lot be divided? Restrictions? An ability to sell off portion and create a higher and/or better use?

just thoughts......

sorry you posted the 'nest-egg' motivation while I was typing it. LOL

so just omit the whole Vegas trip! hahah!

But seriously after you explore the above, and still doesn't want to deal. She NEEDS to cook a little longer!

Next....

Jen

Yes, definitely not the Vegas trip, lol

BUT, I would so do the subject to on the deal if need be. They want to move to El Paso from Emory, TX to be near their children and grand children, they are wanting to be accessable to doctors (they are elderlY) They are out 80 miles from Dallas and live "out in the boonies" as we would say here in good ol' west texas town of El Paso. They also want me to find them a deal here, guess they like me (that's plus one)

But I know that they miss their family here alot and it's hard for them to get
around being so far out from the Big City to see doctors.
Yeah, she sells the hell out of her house, and I just listen because she needs someone to empathize with her, I sense. So she decides to call me back and not relist her house with her realtor. But she wants to sell the house before she starts looking in El Paso. So since I DONT have buyers in Dallas, yet. So here is what I'm thinking could be done:

Lock on Contract for 58,800 (60% of 98k)
Minus repairs, (not sure if there are any needing to be done this house looks great on Pics!) but let's just say light cosmetic 3,000.00 (paint) The roof
looks good but with out seeing presently cant be sure. A/C is 8 yrs old so seems like it would be okay, nothing wrong with it.
The house is made of composition wood and the carport is open not enclosed.
Water heater been replaced in 4-'11
She had the house ready all the time to show (retail) with her Realtor.
She just may take it because she knows she cant move without selling the house first since by selling it, will give her cash to buy something here in EP! Whew, more explaining than I wanted to do, forgive me, I hate writing!
Then add my 2,000 assignment Fee! I dont have sold comps in the area as I dont have a realtor to work with in Dallas, this deal just happened to be her family calling me from my bandit sign! So gotta see it through. YEah, I know the knumbers were off at first, forgot they owed on it still. There is much more info still, details if anyone interested, you do the math and see if you can get it from me, you've got a possible deal! Worst thing that can happen is she will say NO! But Best thing is she will call back in another couple weeks and may say OKay! Trying to work on my local deals here, but still see this as a potential deal!

Thanks Again, DG family