Seller Went Crazy!!!!!!
found distressed property farming saturday (11/8/03) called # and asked what is he asking for the property. response $350,000 by what i saw i think this guys out of his mind. anyway told him i have an all cash buyer what would be the lowest he could go, response $270,000. ok whats left on the mortagage? $70,000, what was the original ? dear thats not important but the house is 40x100 thank you
ok i'll speak to my buyer goodbye
sunday 11/9/03 i called because i needed mor info.
i need some additional info before i contact my buyer so i attempted to ask some questions and boy he went off.
1.how many beds baths so forth? 2 2. garage? you dont need one. ok may i ask why your selling? dear that is my personal business you dont need to know that! (now i am sweating) <IMG SRC="images/forum/smilies/icon_eek.gif"> all you need to know is the price which is 350,000 i have had 6-8 offer for the property and they are getting close to my price . 3. when can i make an appointment for my buyer to see the house. dear what s in the house doesnt really make a difference your guy is just going to knock down the house and build a one or two family anyway.
i tell him sir i am only doing my job dont mean to disrespect ! he says i dont mean to be rude but i am also a broker just recieved my license but in the business for 25yrs. i want to buy a building and need the money so i can open my own business and time is running out and dont have time to play games. and he kept going and going and going
ok sir are you saying you are firm on your price? dear if he is interested lets sit at a table and see what happens but i am not playing games. ok sir bye reponse tell your buyer to come tommorow about 10-11am ok sir
researched property:
asking price $350,000
minimum acceptable: $270,000
date of purchase: 4/30/99 for $88,000[/B]
at 8.25%
balance : $70,000
Single family detached frame
FSBO (although he calls himself Mr. singh on the deed and morgage papers there is a different name.)
lot size 40x100
bedrooms: 2 baths: 1 living area: 720
dept finance value $201,000
taxes:$893.32
sfh in area do go for 350,00 and up 2 fam go for 500,00 and up
is this a deal to pursue or dont even bother my buyer. i think this house is for investors who build houses from scratch. deed says can build one or two family on lot.
amynewbie HELP!!!!!
[ Edited by amynewbie on Date 11/09/2003 ]
I would say leave it alone unless the guy becomes a little more helpful. He sounds like he is hiding something. Asking why he is selling is an importan question maybe there is something wrong with the property like its being rezoned or there is some bio hazard or something.
Also seeing inside is improtant maybe your buyer doesn't just want the land to build on and infact wants the house.
To me I would pass unless I new more about the place. You never buy a property blind.
Sounds like a decent deal if your numbers are accurate. How are you determining FMV?
Researched my numbers from the mortgage papers & deed which have the origanal purchase price and interest rate. Also pulled a property history report.
i live in the area and single family homes go for $350,000 or more, 2 fam for $500,000 and up. there are rehabers all over knocking down distress properties and just building new ones or remodeling them.
am i missing anything????
amynewbie
does anyone else have any comments on this. seeking every investors response. anyone else think this is a good deal. or bad deal
the score is tied one for good
one for bad
any takers
amynewbie
amynewbie,
I will go along with Jorge on this one, if the numbers work then from what you have described it is worth pursuing.
However, I stress setting the appointment to talk with sellers. When you get face to face chances are far greater that you will receive all the information you need to analyize whether a property is a deal or not.
People are easily offended over the phone when certain questions are asked, like asking why are you selling, you are a stranger at this point so you are owed no explaination from the seller as evidenced by his response.
I point this out because I do not believe you are the type of person who would not want to meet with a seller in person.
So, if you are farming areas and you find a property you want to pursue due your due diligence (market analysis) first then setting the appointment would be the next logical step after you know more about the area than the seller.
John $Cash$ Locke [ Edited by JohnLocke on Date 11/09/2003 ]
I would just add 3 thoughts. First, you said the name on the deed and mortgage is different from the name this guy's giving you. I would get the tax billing address and owner name from the municipality to make sure this is not an absentee owner situation. If the addresses don't match up, that's a red flag. Even if they match up, If you do decide to give him a contract, I would use the owner name as stated on the deed and mortgage (regardless of what this guy calls himself).
In addition, your state law may require property owners to give buyers written disclosure statements (if you don't know if this is the case, a local real estate lawyer or agent can tell you). If I gave him a contract, I would attach the disclosure statement and incorporate it by reference in the contract.
Finally, he says he's a real estate agent/broker (which he should have disclosed up front). I would go to the website of your state real estate commission and run the owner name and the name he's given you through the verify licensee database. It might be interesting to see what comes up.
One more thought on this. Almost all sellers will tell you that there are other buyers interested. Don't believe them, and don't fall into the trap of increasing your offer just because he tells you someone else is interested. I doubt it! Only offer what you truly believe it is worth. If he tells you it is not enough, there are plenty of other deals out there. Say thank you, but my offer stands at $xxx. Make sure that you leave your phone # and tell him that you would be interested if the other deals fall through. He may surprise you with a phone call at a later date. Do not give him the I told you so attitude, just proceed as if nothing was said at all.
thanks everyone
nancy the names on mort ,deed & tax bills are all the same including address. as far as the disclosure statment i am diffinetly going to look that up. going to check the real estate commsion website also.
johncash god bless you your always there when i need you.
thanks in advance
amynewbie
anything else you come up with guys just post please. made appointment with owner and my buyer for friday 11/14/03 and want to go armed.
amynewbie, this is right. i have 3 or four close friends/homeowners in south ozone park and they all say homes are getting bought to be knocked down to have new ones built.
i could be off, but i'd say you were in the driver's seat in your bidding. he obviously thinks you too are in it to knock it down and he may be bothered by it (hence the sticky attitude). also, i doubt he's getting close to the asking price if that's what they all want to do. the builders will want to lowball an offer (in all cash to impress) even in NYC because they still have to make a build a new place, find a buyer and STILL turn a profit after all that.
my guess is to follow the deal thru and stay your course. let him come groveling back to you after all is said and done!
good luck. if you get this, you're treat at Sybil's (133rd st and 133rd ave) right?!
his minimum acceptable offer was $270,000 down from $350,000. not to give this guy a stroke what should i offer ??
jackman thanks for your post very encouraging.
amynewbie
i couldn't say a number in good faith, without knowing what is involved in fixing up the place and what liens he may have on himself and the property, then what you want to make on the margin. all of that goes into it. but i'd start with .80 of what you know to be his lowest allowable offer and start taking stuff off, holding costs, and all the above stuff.
sorry i can't be more clear on that, but too much goes into figuring out asking prices.
HEY AMYNEWBIE
40X100 LOT SINGLE FAMILY HOME IF YOU GOT HIM DOWN FROM 350 TO 270 OVER THE PHONE YOU NEED TO MEET WITH THIS MR SINGH AND GET THE BALL ROLLING OFFER HIM 260 BUT TRY AND HAVE A BUYER LINED UP EMAIL ME MORE INFO ON THE HOUSE I LIVE JUST ON THE OTHER SIDE OF CROSSBAY BLVD IF YOU GET HIM DOWN TO 260 I MIGHT BE INTRESTED ACTUALLY I THINK I'M ALREADY INTRESTED ANYWAY GOOD LUCK AND PM ME OK
hi all
my buyer walked on this deal. says its for a builder. i have spoken with steve cook via email and has said to find another investor because there is a deal here. anyone interested email me or pm me
amynewbie
p.s. i had called and left a message canceling the appointment with the seller because my buyer said it needed to be bought below 200,000. the seller called me back and left me a message to call him back. i guess he was interested. didnt call back because dont have a buyer.
amynewbie