Possible First Deal For Newbie
Seller has 3/2 home with no mortgage - moving, already bought new home in different city. Appraisal $170k. Willing to defer payment until December 31st - no sales price just yet - but I plan to offer $140K with fixup costs running about $10-15k.
I would like to know if there is a deal here as I would like to bring in an owner occupant but the 6-7 month payoff with seller is of concern. What is the best and worse case scenario I should expect?[ Edited by rsljll on Date 05/25/2004 ]
Your options are what ever your creativity will allow. Not saying I have your answer but here are some thoughts:
Let's say your 140k is the number you're happy with after your "due dilligence". You could offer him this figure, or lower, for an all cash deal.
You could also tender an offer to bring in a portion of the selling price in cash and have him seller finance the balance on terms you are comfortable with seeing that there is no mortgage owed by him. You will need to explain the benefits of doing this to him.
You could lease/option the property among many other options open to you.
The biggest issue is getting the property under contract so you control it. Otherwise, if you wait too long to decide on your plan of negotiation, an experienced investor will already own the property. Good Luck.
Dave