luxury home

Frank,

how much to paint? sq ft?

house is only discounted 12%..not much-you need 30% off - repairs

**owner finance 12-24 months with interest only paymnets and balloon in 24months with selling price of $450k

iee is an option-price is key

Remember he has NOTHING in this so his ROI is infinate.

Remind him the average DOM is ? 280-350 days-does he want to have to wait that long?

Find his 'magic buttons'

My thinking and correct me if im wrong is id need 30 % to flip to an investor but what if i flipped to owner occupied? And only the 4 bedrooms need paint . He wont hold any paper he wants to cash out. House is beautiful and on the water new bulkhead too.

lock it up and see what happens

I dont think its deep enough discount but if you can get YOUR terms and make it work for you...go for it-market it and get some buyers fast! tell ppl @ wk and everywhere, everyone

Run the numbers!!

Frank,

put an ad on CL (with your fee included in the price)and see what kind of response you get; then you could do an assignment with an owner occupied before a realtor lists it on the MLS...

Wishing you success,

Valerie

Exactly my thoughts valerie ty and i will see if he will let me lock it up. He keeps eluding to the fact that if he signs a contract with me and i dont find a buyer thats time he lost with the house on the market. Should i let him try and sell while i market the property ? And whoever finds a buyer first voids the other contract ?

frank-

have an Open House on sat and/or sun- have contracts available-put out a bunch of signs and even an ad in the paper-but most important have a contract with the seller
Are there any 2nd homes there? maybe some of the current owner like you would like to have a2nd home

Not sure how many second homes there are but this is the jersey shore and alot of houses in this area are vacation homes. Ive been to round robin auctions and that sounds like a great idea mike. I really believe i could unload this houae for 5000 more then my contract price . Thanks mike

Frank,
really $5000? how about $10k - think big and drop -

If there is a security entrance to the neighborhood, ask to put a sign there to attract current owners(only after you have it under contract)

get the seller to drop price

No security gate . Im a newbie so im not thinking big im just thinking about taking action. Im just happy im taking that step. But its not to say i wont ever think big.

Try for a 180 day option and go record a memorandum of option. If he asks why you want it for so long, ask "How long do you want me to try to find a buyer for your house at no expense to you?" If you haven't wrapped this up in 60 days, you probably should move on to the next deal. Document all contact with potential buyers by email. A provision of the option is that if he finds a legitimate buyer before you do and has a signed purchase and sale agreement, you will rescind the option at close of escrow. That way if the deal falls thru, you are still on board and in the position to take back up offers. You don't have total control in this situation, but considering he doesn't want the property tied up while you look for a buyer, it's not a bad alternative. One key is how much cash he wants now. If over 400k in cash right away would make him happy, he could seller finance....60k down, 360k first, 105k second. Since the first is at 60% LTV, he should have no problem selling the first with minimal discount. He keeps the second. Ask him what he would do with the money anyway...buy a car? He can use the payments from the second to pay for the car. At least that way, he won't squander $105K of it all at once. If he says he's going to invest it, ask him where else he can get 10%. Run the numbers and show him how much he will net for the sale of the house after carrying the $105k. He's going to get over 400k cash right away. just a matter of finding his hot buttons and making the deal press his hot buttons. Remember that there are a lot of people who strategically defaulted on upside down homes who still have money and good paying jobs that have a problem getting bank loans.

Thats alot of great info and i can definitely try that. And i cant believe i never thought to tell a seller that im maeketing their house for free. Thats huge. Thanks alot for your help trsd.

you save them the 6% or more realtor commission

theres is always at least 10 solutions to each problem...thats why we are or should be 'problem solvers' and know how

however if you if listen to the sellers problems and understand them, then you can resolve them with one or more of the 10 solutions....be careful NOT to give too many options it results in asking a woman to pick a color to paint a wall/room

keep it simple

If you dont let them know the options...what does he have to choose from? this is YOUR job to come up with the solutions-be a problem solver and you can only do so by listening and using your knowledge/options to put the deal together-take your time and think about the issue at hand

You can do so by showing the seller the benefits from the options you offer

Ok mike thanks i will keep it simple . For me just a straight assignment or iee would be the most simple way to go for me and the seller . Im going over this weekend to talk to him.