Please Help Me With This Deal
This is my first deal, other than as a birddog. Seller is asking $260,000, which is right at the FMV. I already made a sub2 offer on their $125,000 loan, which they didn't care for, but the conversation led to talking about an all cash offer.
I told them, "In this circumstance my partner and I usually offer around 75-80% of what the house is worth." The wife got out her calculator, and saw that 80% is $208,000. She and her husband seemed to indicate this is a figure they could live with, and I agreed to get back to them the next day.
The house is in nice condition, but it is not vacant, as they are living there. They would be expecting (from what I gathered from talking to them) to get the money right away so they can move, although they have indicated they wouldn't mind renting the house back for a while.
I don't know how I can ask for 30 days to market and show the property. That might be a turnoff, I feel. Therefore, I'm not entirely sure what my exit strategy would be. This is one of those "close quickly" situations, but I need to look for a wholesale or retail buyer.
Please offer some suggestions...I need to call them back soon. I am REALLY on the verge of making this deal and would like to see it fly!
If it were me I would contact investors/rehabbers you know to try and flip the property to. It seems like there's enough room there for both parties to profit.
Do you have a list of investors yet?
Yes, I did build a list of 20 or so people, but it's taken me a bit of a whiile to come across a deal. I guess I'll call them immediately. It's a little over the price range of some of them, but not that much.