The life and times of an Arizona Investor

This will be my personal journal to document my failures and successes during my real estate experiences in Arizona. All stories, thoughts, and successes will be documented..

Tuesday, December 13, 2005

Another offer submitted.

Ok, so I was going to take a break in December, but this lead popped up!

I found a guy that trying to sell quickly. He bought a house a year ago and started fixing it up for his family. Unfortunately, he got divorced, and now has $2000 a month child support payments and needs to sell the house. He has put himself in a bad situation because he is currently completely remodeling the house and he is only 60% complete. He's a plumber , so he has pretty much redone everything. He has moved rooms, and added bathrooms, and gutted the kitchen!

He can't re-fi it because its not livable. Actually, there's no water to the property right now. Anyway, the numbers are not great, but assuming a repair of 20k, I can make 15k without doing any work myself. This is not bad since I used slightly conservative numbers.

To make this deal work, I needed to assume his loan which he was willing to do. He wanted 5k now, and 15k on the back end.

I was only willing to give him 5k to make the numbers work. He was pissed when I was talking with him about my offer. I shut him down quickly, stating that this is an offer, don't take it personally, its an offer that only makes my numbers work. I'm not forcing you to take it.

He calmed down in a few seconds, but didn't seem interested. I didn't push him hard like, you were saying that you could go into foreclosing, I can make sure you don't!

This is the type of lead that he may call back in a month or so to re-negotiate.

Good investing
|| Bginvestor, 7:44 AM

2 Comments:

Yes, it's all about the motivated seller.
Blogger OC Real Estate Editor, at 7:05 PM  
It was smart and correct of you to point out to the seller that an offer is not personal. He got that pretty quickly.
Blogger Seattle Eric, at 1:04 PM  

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