Found a great buy where do i go from here

please! i really need someones help!

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I don't mean to sound harsh, but this is a tenant buyer. You want investors (landlord buyers)! Tenant buyers are picky and take forever to close, while investors only care about the numbers and have cash to close quickly!

Although it doesn't hurt to have this person on your list, you should really focus on getting buyers with cash.

Don't be afraid to lock up deals (if they are good!). You can always back out after 14 days if you put a contingency clause in your contract that says its contingent upon 14 day inspection.

I finised the books and listed some For Sale by Owners. The first in the list I called is a retired elderly who has been selling his home since May 2012. He 1st listed it for 200K now down to $199K. I asked him about owner financing and he said it depends if will benefit both of us. I checked his current home value and is $185,500.00 but asking price is $199,000. I'm nervous to blow this away, he seems to be a nice person, like around 70 to 80 and he said he wants to move out the city and live near the beach.

Can anyone help me what approach I can use... please or give me any insights how to break this up to him.

THank so much.

I finished the books and listed some For Sale by Owners. The first in the list I called is a retired elderly who has been selling his home since May 2012. He 1st listed it for 200K now down to $199K. I asked him about owner financing and he said it depends if will benefit both of us. I checked his current home value and is $185,500.00 but asking price is $199,000. I'm nervous to blow this away, he seems to be a nice person, like around 70 to 80 and he said he wants to move out the city and live near the beach.

Can anyone help me what approach I can use... please or give me any insights how to break this up to him.

THank so much.

He isn't desperate enough. His price reduction was only 0.5%. You need to buy this house for $115,000 if its in perfect shape to make any money on it.

But it's always worth a shot! I would just try to negotiate the price down. Just say "The problem is your competing against all the foreclosures out there. Which are really bringing down all the value of the houses. If you want your full asking price you should call a realtor and list it with them, and then in the next 9 to 12 months you can probably have it sold. The downside is you have to pay all their fees and commissions and fix up the house and it takes up a lot of time right now."

Then stop talking and just listen! Don't say ANYTHING until they respond. If what you said seems to realize that he NEEDS you to sell his house, then set up an appointment to go view the house.

If you aren't embarrassed by your offer, you're paying too much.

Thank you Dominic, price was really one of my concerns and it helps a lot to know that if you were me, this is what you'll do. You lesssen my fear. House in the same area with the same size of property but a just a little smaller lot size without pool is for sale for $187,000 but is valued at $149,000. It gives me a confidence that since he's not hurting by money, hopefully he allows me to buy it low and sell low or rent it out to pay him the mortgage. I'll keep my fingers crossed.

Hey, Tim...
Find what your buyer is looking for!
...Find a seller with the like, (MLS, FSBO, etc.) and negotiate a good price.
...Run the numbers. Do your due diligence. Make a discounted offer.
Get your contracts (with addendum) ready. Matchmake the 2 together.
Make it a win-win-win.

I appreciate the comments! I guess i am just scared that if i lock a house up he wont want it, but i guess i am just going to have to make and offer and hope he goes for it! i think it will work out in the end i just need to do it.

Tim, word your contract so there's an out clause/contingencies: "like 14 day inspection" or "subject to partner's approval", etc. Plenty of info. here on DG Forums for contracts & wording, specifically.

Also, when you sign the contract: "Tim Cook and/or assigns" to EVERY signature on the contract, this too insures the seller SOMEONE will buy their house. Reassure them of this. That way if one buyer backs out, you'll still have time to market the prop to others! And, you can always go back to the seller should you need more time. All things are negotiable.

PS. Do yourself a favor by familiarizing yourself by REVIEWing the contracts you'll be using. Read them till you see the bigger picture. Also, under "Student Resources" (lower left of DG.com) >>>"Forms and Docs"
Gain confidence by reading/reviewing them.
Also check: Real Estate Contracts for your state, available on their website.
(Here in TX they are TREC forms).
You should use them and add your contingencies/addendums, etc.
Write it so YOU control the deal.

YOU CAN DO IT, TIM!!! I wish you well! Take it one step at a time.

PPS. Run bandits signs or ads on CL for exact kind of seller your buyer needs

Hi Tim!

Great job on finding a buyer, but Dominic is right.... we need CASH BUYERS that can close quickly. You can continue trying to find a house for your buyer, but it could take a long time and if you lock up a house for him, it may be too "retail" for any cash buyers you do get, PLUS you'll need additional contingencies in your offer to accommodate his need for time and financing.

Recommendation: give your buyer to your real estate agent and ask for a bird dog fee if the deal goes thru.

Work on your buyers list... ghost ads, bandit signs and CL ads and begin to make 25:1 offers. As long you lock up a deal at less than 75% (better at 70%) of ARV MINUS repairs you'll be able to wholesale it.

Keep going, you are doing great!
-Tina

Hi, Tim!

There are 2 kinds of buyers: investor buyers & tenant buyers. You should keep a list of both (eventually). 2 Buckets.
Investor buyers typically are Cash Buyers and can close quickly, some within 7 days.
Tenant buyers are typically 1st time home buyers (renters) and will need to be pre-approved for a loan. Pre-qualified and pre-approved are a bit different. Using a bank to get a mortgage on a house is a longer process. It usually takes 30-60 or even 90 days to close on a property.

For starters try to build your Investor Buyer's list. It's a matter of CA$H vs. Conventional loan. It's a faster process.

However, should you find a seller willing to do "owner financing" you would be able to match that seller w/your tenant buyer. This can be a little complicated when starting out.
Your best bet may be to refer him like Tina suggested.

Run those FREE classified ads for Investor buyers!!! Then you can look for properties they want.

PS. Check the threads here > jjensen has a list of ads to run to capture them + scripts for when the calls come in!

Hey Tim,
look for a wholesale type deal and offer it to that person. At the same time put it on Craigslist instead of a ghost add. If it is a great deal money will find it.
You might want to show your potential deals to your client in a drive by fashion to help you decide which one to pursue.
Grab the bull by the horns.
Thomas