Seller will not allow an inspection

I would say run the number based on a full rehab (in CA we figure about $35 square foot). so do the math ARV * .75 - rehab cost=her asking price I would probably look further. If not I would seriously consider walking away if she is not willing to negotiate
Good Luck, play it smart, leave emotion at home.
Jim

I would have to agree with everything that Jim has said above; honestly, if you are calculating a kind of maximum worst case scenario for property condition for your offer, you have basically covered yourself for whatever you may find.
I would add one other item, and that is, if she has an objection to inspection of the property before making an offer, that is one thing. But if she has an objection to inspecting the property once it is under contract, I would not walk away, I would run away. Under those circumstances, you are either dealing with an exceptionally unreasonable or maybe even a mentally unstable (yes, you can read that as crazy) person, and that just does not bode well for a successful closing.
As my first mentor taught me: "Deals are like buses, if you miss one, wait 15 minutes, and the next one will come around the corner." None of us ever has to deal with people that we do not want to deal with in real estate investing, that's one of the things I like best about it.

Tell her you want to inspect before you sign a contract, with your money!
You are the Buyer!
I would want to know what I was buying!

So, If its being "Sold as is" still does not mean that the buyer cant pay for the inspection. Maybe thats what she is concerned about? Maybe she thinks it will cost her more Money. Educate her who pays what.

Closing cost NO! Sorry Its only maybe 2%?

Good Luck!

Jay c

She is not motivated; at least not yet!

Joy,

I would tell the seller that you will not buy a property without being able to do an inspection; give her your business card, and let her know that she can call you when she is ready to sell.
Your offer will depend on your numbers, not on what your seller wants.

I have to wholeheartedly agree here. Plus, if "deals are like buses" you never want to be thrown under one either. A non-negotiable price without an interior inspection sounds like a high impact deal that I would let pass me by.

Where I am it's very common that for a wholesale deal, the buyer pays all closing costs. I see it all the time. You are also assuming that to take on that extra cost you must be getting a great deal.

This person really is crazy. She is not that motivated, otherwise, she would be jumping all over that inspection like yesterday. I am sure that she did not buy that house without having an inspection first. How then, does she expect someone else to. Don't walk, flee!!!

If the seller won't let you put an inspection in your contract just use another exit clause.
1. This contract is contingent apon partners approval
2. This contract is contingent apon approval from a licensed contractor

Or since is FSBO just put a $10 down deposit and if you can't find a buyer you will only lose $10. But like everyone said above, if she's not willing to negotiate with your terms then she's really not a motivate seller. Let her simmer for a little longer LOL

Dallin,
Love this:

As my first mentor taught me: "Deals are like buses, if you miss one, wait 15 minutes, and the next one will come around the corner."

Jim

Not a real motivated seller. Don't be desperate, just walk away while giving your business card.

Hi Coach your so right and those buses keep coming no matter what, so wonderful, Jim

Joy I am not an experienced REI but is just common sense, is any thing wrong with that house that she doesn't want you to find out? and beside that, how are you going to figure out repairs when you don't have an idea of what is going on? it seems to me that you will be better if you walk away from the deal, but is just mY HUMBLE opinion, REMEMBER THE BUS IS JUST AROUND THE CORNER.

May I just say to everyone who has posted here that I have enjoyed reading each individual take on the situation--what a tremendously creative group we have here. They should hire us all to solve government problems, we'd have this country straightened out in a few months. I am really serious in my commendation here, I loved reading the content, and also loved the humor along the way!
Referring to the bus comment, I have added my own addition to those wise words from my original mentor. Here are MY words: "You cannot, however, catch a bus from your living room."

In other words, stay active, you have to be in the marketplace to find those deals.

In many markets it is getting harder and harder to find deals, but that should never create a level of desperation whereby we start tossing out the tried and true steps to creating a financially successful deal.

If you are finding that the buses are not passing every 15 minutes - then grab a taxi or start walking. Like Dallin said, it is not about waiting for the good deals to come your way but by hitting the pavement and keep looking for the deals.

Shes either not really desperate or is just negotiating. Let her know AS IS is perfectly fine but you just want to get an idea of how much repairs your looking at .. so you can determine if it makes to make asking price. If she understands set an expectation that you be sending ppl by a few times. Buyer paying CC in a wholesale deal in Phoenix is normal as you pass it on to the buyer anyways.

I use an option contract with $1 down there is no inspection period I just lose my $1 dollar if I dont perform.

You really have to try and build a relationship with sellers and hope they loosen up. If not just work it the best you can or move on.

Dallin, Simon, and of course Jim, who quoted the 'bus' analogy... this is what makes this site so amazing! You learn so much, and you have so much fun at the same time!
I agree, if the bus doesn't arrive in 15 minutes, don't just stand there waiting and wasting precious time... keep moving forward however you can... walk, run, catch a ride, get a taxi, look for another bus route...

to everyone's success!

To All, always such a pleasure and learning to read your posts, and as Valerie says, there's humor and fun here as well.
Soooooooo, since we've all had some comments about the seller who precipitated this string of posts, (I'm sure glad she isn't within reach of this group, we would have torn her to pieces), the consensus seems to be--move on and don't look back.
I just want to make sure that we don't allow anyone the excuse of blaming their market for their inability to succeed. Those who are experienced who have posted in this string would no doubt agree that there are plenty of deals to be found in every marketplace, but you may have to do more searching to find them in some markets.
To that end, I created a post string called "51 Ways to Find Properties," posted under: Real Estate Investing >> Marketing to Buyers and Sellers, and others have added even more methods under that post. I'd like to challenge everyone who reads this post to add 1 new method of finding available properties to your marketing methods within the next 30 days. In other words, check out a new bus stop--or more if you choose.

If my bus doesn't come or I just need a pick up, I have you on speed dial!

One of your angel friends!

Karen... you are too funny! xx

Dallin, that is a great thread; I'm surprised not many people have seen it? I'm including link here...
http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...

I just have to say that I am very much impressed with all of the input you have been giving on here since you joined. You give wonderful advice and explain everything so very clearly.

Hope you are here for a long time. A wonderful new member to the DG family!

Karen

Thanks to both Karen and Valerie for your wonderfully kind comments. In case you haven't noticed, I love to write, and 16 years involvement in training and coaching real estate investors kind of fills your head with practical advice and suggestions to pass along. I write because I have to, my head will burst otherwise.
Just want to share a few words of encouragement to everyone who is reading here. "Real Estate Fortunes have been made in good times, bad times, and in-between times." There is never a bad time or a bad market to be an investor. Stay with it, and never doubt either the program or yourself. You will succeed.

We would hate to be responsible in any way for a head explosion! Let us keep helping you avoid that catastrophe!

Karen

Wow, what a varied education for all of us in handling either an uneducated seller (or a nut case.) But still there is a chance of getting a deal if the buyer is very careful! Good luck.

Karen, I always appreciate your comments and additions, thanks for watching out for my welfare.
One of the interesting points in this thread is the underlying implications of working directly with sellers. As an investor, we will find ourselves working with both sellers and agents in making our offers.
Agents will tend to conduct themselves more professionally, but not always, their training is usually mostly about legal requirements, and not so much about how to work with people, and how to effectively market properties, or how to be responsive to emails and other requests. And many agents are part-time, which means that they are not available all day and evening, and have to fit their tasks into a limited time frame. And they have not necessarily been trained on working with investors, or how a creative/investor deal is structured.
My point in this is that we have to be very patient and understanding in working with agents, but we also need to be professional and not allow ourselves to be taken advantage of. It's a fine balance. We also have to be aware that if we want an agent to do what we want, we have to patiently train them to do so, and not be condescending in the process--they are professionals and deserve to be treated as such.
Now, on to working with sellers. Just because a person is trying to sell their house does not mean that they are good at it. Nor does it mean that they have good people skills, or even that they are going to be rational all the time. The only thing that can be guaranteed about every seller is that they have a problem (they need to sell a property) and that they are looking for someone to solve it.
Sellers may not even be clear on what their problem is, or what solutions will actually work. Most sellers think that the only way they can sell a property is the conventional way, because they have never been exposed to anything else, so seller finance, or receiving payments over time are either mysteries to them, or something that their cousin's friend's grandma had a bad experience with. Our job is to encourage, reassure, and put together offers that are win/win. We are certainly here to make a profit, but the more good will we can spread in the process, the more we will receive referrals, and also help our industry to grow.
Whether you are working with an agent or a seller directly, always keep in mind that they will do business with you only when they perceive that you are interested in their welfare, and include that in the plans and deals you put together.

You could always walk the seller through and point out any areas that are going to need rehabbed. Even without an inspection you can walk through a property and get an idea of what things are going to need fixed before being able to sell it. When you put together a list of items that will need work and go over that with the seller, she may see that it's going to take some work to get it done and be willing to lower her price some, and she may also realize that there aren't a whole lot of buyers who would be interested in buying with all that work needed. If you know anyone who is a contractor or rehabber you could always bring them along for their opinion on what you would probably have to fix. Some rehabbers who buy properties around here automatically add 15-20k for rehab. Some will always include mechanicals while others only include them when needed.

Take a look at the market and what houses are selling for to see what you can realistically work with, most investors won't buy past 65%, and most investor lenders won't lend past 65-70% and that includes points and fees that have to be paid too so keep that in mind if you are marketing to an investor buyer. Most sellers have an idea of what they want no matter what or how unrealistic. Remember a person who has owned the house will usually see more value in the property than there is really and they are driven more by emotion than anything else. Also did you find out if she has a mortgage she owes because that may play a huge part in how much she can go down in price. She may also need cash above that for moving or other expenses so talking with her and getting an idea of what she owes or needs.

Another addendum you can use is subject to lender's approval, this way you can always say the property doesn't meet your lender's guidelines if it doesn't work out for you or you don't find an end buyer.

In all the properties I have bought the seller has paid all closing costs. I write it in my initial offer, as well as seller concessions to cover lender points and fees and lender closing costs (I use a HML) and sometimes I can work in some cash back as well.

I believe I have posted information on this elsewhere, but I had a thought related to rbailey1962's valuable post above. There is a location online that mortgage brokers use to shop for loans for their clients. They post a loan request, and receive responses from actual lenders. While we may not be mortgage brokers, this is an open site for viewing the posts of mortgage brokers and the responses of lenders. To use the site, go to www.scotsmanguide.com, scroll down on either the Residential or Commercial side to the posting area, and click on View Posts.
What you are looking for are loan requests that resemble your project, and where it lists one or more replies to the post. Open the post, scroll to the bottom where you will find the name of the respondent, along with their company, and their phone and email information. You can contact them, let them know you are a principal rather than a mortgage broker, and that you found them on Scotsman guide. Let them know you want to speak with someone who can discuss your project and see if there is a match for their loan programs. There are over 45 thousand posts in the residential area to review, so chance are good you will find something that matches.