I Can Write my Own Check but it Means ripping the legs off of an Old Lady

way to keep them comin Rando

Is this a trick question?

I can't believe you actually wrote this for all of us to read... I'm sure you can rip off this poor old woman, and I'm sure you can live with that... but if those are your intentions, I think most of use here would rather not hear about it?

You are a big boy, you don't really need us to tell you if it's right or wrong...

wishing you the best,

I just wanted to illustrate how we can come across these difficult decisions.
99% of the time sellers want more than we can pay and occasionally something like this comes up.
For all I know the house is a tear down, Maria said the house was moved there 45 years ago, I suspect there will be foundation issues & a multitude of problems.
I will check out the house today.

Rando

Rondo, going back to the seller to further discount the sale is typical & taught by Dean & Matt. As the seller accepts the reduction, that doesn't make you a bad guy - it makes you a keen negotiator. So, good for you. You shouldn't second guess yourself here. If your conscience is going to keep you up at night, do something else to help her more, along with still helping you & yours. Win-Win, right?

I have a slightly similar deal where the seller wants out of long distance landlording, and is willing to take the mortgage pay-off, which is about $10k less than the ARV. Doesn't need a lot of repair, and has a $600/mo renter. I want to wholesale the property (in Alabama) >>> to create a sensible spread, can I offer less than the mortgage payoff? If I did so, does that mean the seller would have to pay some amount at closing, or does it come out of an established equity? Or, am I beating a dead horse here? Hope you can help Rando and readers.

I wrote the contract up for 40K to seller, Buyer gets it for 55K Everybody is happy.

On this deal your presenting, depending on how motivated the seller is, I wud offer to lease purchase it for the balance owed. Bring in a new buyer that has 5K down, vive seller 2K and you made 3K, also you will sell to new buyer for the full price and make 10K down the road. Make it a 36 or 60 month balloon, or just have them pay an extra $100 a month till you get ur 10 Grand.
I like to do these where the buyer never has to refinance and just pays till the house is paid off, you will need to file the option agreement with the County Recorders office but that only costs $25 and maybe have it notarized for $40
The seller may be hesitant to do this, but it's a lot better than renting, he has a buyer that has pride of ownership and has skin in the game. If he ever defaults, original seller get the property back and the mortgage has been paid down and the home values have risen and he's in a much better position to profit, But you cud write in that you will take over if that happens, It might mean you will have to make up a few mortgage payments till you get a new buyer, and these types of buyers will buy as is.
I've done a few of these and I like em.
Rando

[I wrote the contract up for 40K to seller, Buyer gets it for 55K Everybody is happy.]

That was, as they say in the NBA, a Grown Man Move you made there Rando, sticking with the original deal. The old lady still has her legs, and everyone got what they asked for. Nice Executive Decision. You'll sleep well on that one.

Thanks a bunch for the advice on LO'g. That sounds like a sound plan that I'll explore. Thanks again, and congrats on your deal.

Randy YOU know Better....

http://www.deangraziosi.com/real-estate-forums/local-networking-and-disc...

I often wonder, what's the difference between being a good business man and being a ruthless heartless monster.
Maybe it's all in the eyes of the viewer.

Why are you concerned with what others think of how you conduct your business Randy?

Don't you care what others think about you? Your family, Your friends? Your associates? That's human nature my friend. We all want approval and acceptance.
Unless your from a different planet.

That's half the reason people don't move to action. They are afraid of what others will think/say about them.

Rando, I have watched your post in here for some time and I know the type of person your are. If this was me the first thing that comes to mind is PIGS GET FAT AND HOGS GET SLAUGHTERED. I have lived by this and it has made things come back to me 10 fold. If it was me I would share some of the extra with her or large gift card to ????
It doesn't matter if it's an old lady or a teenager. It's is how you feel afterwards looking back at your life... Business is business but a big profit will not get you through those big white gates...Keith

One of my hobbies is studying human behavior. In my years of observation I've found that us humans can justify anything & everything. We can steal because we need it more than the other guy. We can take another mans wife because he wasn't treating her right. We can even murder, the guy deserved to die or we did it for our god and county.
It's fascinating the excuses, the blame, the justification that goes on in our little human brains.
What wud I do to change things? Haha, I'm not above all this, I'm in the thick of it, working with my own demons. It does seem to help just knowing and having some insight.
Don't suggest religion, I have observed that religious people are some of the worst. They can lie, cheat, steal, backstab, gossip, etc and be forgiven on Sunday.
Just some of my thoughts & insights into human behavior.

As Zig Ziglar said "You get more of what you want by helping people get more of what they want."

That TRST is a Profound statement that I believe in.
Zig Ziglar is one of my idols, I love bringing up his videos on You Tube and watching them.

My buyer/Realtor and the end buyer went to see the house by appointment, the seller looks out her window at them but wont open the door. My buyer calls me to say that 55K is too much because even from the outside they can see it needs a new roof and new windows. I went over there the next day and finally got interior photos and sent them to all my buyers with a new reduced price of $49,500 It was really bad inside. 4 dogs, house had the original front door from 1929, an area of the ceiling had come down from a roof leak. I never checked the foundation and I can only speculate but the floors did seem solid.
Within a few hours my other favorite buyer emails to say he wants it and to send him the assignment and the contracts.
So, the seller still has her legs, and I'm still making a serious amount of cash off of this junk house.
Who the heck wud complain about making $9,500? And from a $1.80 bandit sign?
I already have several deals in escrow, several are ready to start escrow, waiting on contracts to be signed and I'm waiting on a probate & Appraisal to be completed that will pay out 28K and I'm gearing up to push a lot more post cards out the door and get a lot more bandit signs up.
It's going to be a profitable year.
Let's make some Money.....
Rando

i know you posted that to see what we'd post and I also will be honest & say I have wrestled with demons too like you said we all do n those who say they dont are liars. true w/you say religious people are the worst! backstabbers etc

anyways love how you handled it & I would have gotten it for 40k too I just got one in san diego for 280k which is worth 420k n needs 50k worth of work n could have gotten it for less too but I went with 280k n with that i will make 20k fee. san diego is crazy low supply of props.

hey where are you wholesaling rando again? so when i get leads out of my area I can send them to you or co wholesale them? later

looks like the deal worked out for everyone... a win win win... just as it should

good job Rando!

Hi Valerie I totally agree with you, Jim

One of my favorite Guru's besides Dean always says,
"Pigs get fed and Hogs get Slaughtered".