Anatomy Of A Deal Part 1 (Fed Ex Follow-ups)
After a lot of questions and some advice I have decided to post a few journals on deals that may come from the now famous "Fed Ex Affairs" mainley because typing them out may give some relief to this parrothead / poker playing / deer hunting / Bacardi drinking / half arse but loving husband / father of 4 boys..head of mine, and second it might helps some of you with your questions so here goes.
As I said over the past 8 days I passed out 40 letters, 20 to FSBO and 20 to people with Realtor's. the phone call total is up to 7 and 4 meetings secheduled.
Meeting One --Arizona Deal--
Earlier in the week I received a call from a man in Arizona who said his wife received one of my letters about buying their home Subject To. He was trasfered to Arizona and his wife is still in Tulsa, OK. (classic motivated seller situation) and he wanted to set up a meeting for Friday.
After setting a meeting time and getting his address I drove by the home and noticed that it was still listed with a Realtor. A potential problem.
At the meeting today the first thing I found out about was the Realtor and the arrangement. Their contract ends with the Realtor on Tuesday. But overall they were unhappy with the Realtor.
Numbers of the deal:
4/2/2 in a $prime$ part of town. Best school system in Oklahoma.
Home was built in 2002 and is worth around $170,000. He owes $160,000 and was asking $165,000 but after some talking he asked me yes folks he asked me if I would do the deal for just what he owed on it. The payment home for the home is $1165 a month and I should have no problem getting $1300.
All payments are current, no second mortgage, no open line of credit.
Snags:
He knows the loan will stay in his name until my Tenant/Buyer refinances, but being a VA loan he is going to need to find other loan arrangments for his new home in Arizona.
Negotiations:
1. As I said before I usually get up to three months of payments for homes but I sensed this might be a snagg in in the deal so I only asked for two. How did I ask for two...simple. I told him even if the Realtor called him today and said they have a person who wants to make an offer on the home that it is going to take 30-40 days for the final closing to happen. He still would be looking at making the August and September payments while this is going on. He agreed.
2. I need $150 for title search and notary fees. Agreed
3. I need the utilities left on for 15 days after he moves out in order to get my cleaning crews and marketing crews in the home. Agreed
4. Carpets cleaned, and lawned mowed or bring money to closing for it to be done. Agreed
The only worry on his part was can he get approved for a new home loan that is not VA and still have the debt ratio of this current loan. Well he just called me about 30 min ago to let me know that yes he was pre-approved for a new loan.
I told him that he and his wife should take the weekend and talk about it and we will talk again before he leaves his family and goes back to Arizona on Sunday night.
My job is to make a win/win situation for both of us and I feel I am doing that.
I have another meeting schedule with a person at 4 on Saturday. We will call that the tired landlord deal. Nice two story home that the person has leased out for the past two years but wants out of the game.
Thoughts? comments?
Until then...
Rob Carroll
AHS
Great negotiating, Rob. Even answered some questions I had. Thanks for sharing.
Good job Rob,
Please keep us updated with posts on your other appointments.
Marv
Hi Rob,
I really appreciate your posts; so many times people come to the boards asking about 'the guru's" wheras if they would have the opportunity to read some of what some people are actually really doing to get their business going.
I am totally convinced with a small about of knowledge and a willingness to 'do' almost anyone can leverage the information on this board to both make money and help people in the process.
KEEP IT UP!
Great post. Please keep us informed. I like the FED EX but haven't tried it. I have an account with UPS and have next day air envelopes at the house. I'm in the process of getting everything in place and will be trying your technique in 2 weeks. I hope I have the same luck. Thanks again for the post.
Rob,
Thanks for the update and email. I do appreciate them.
Also, I just love the Fed Exfiles as well! Lol!
Thanks :-D ,
OTW
Congratulations on the deals, but call me ignorant - what are the "Fed Ex Files"? I haven't been around long enough to have heard of this particular TCI in-speak...
He drops off letters himself in the free fed-ex envelopes when he contacts homeowners to buy their houses.