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I’m Walter Kubiesa from the Chicago area. I’ve been buying, selling and renting full time for about 15 years. The last few years I have fielded several initially good sounding calls that I have not been able to go anywhere with.
I.E. today a seller called in response to an out of town post card. Mom moved to a nursing home 18 months ago, and the adult heirs in Ft. Worth Texas have been waiting for a market turn-around. The nursing home is costing $8000/month and sounds like the cash is dwindling. HOUSE IS EMPTY AND FREE AND CLEAR.
It is a 3-1-1 with an unfinished basement. The seller said it is in “good” shape, but needs updating. (She mentioned it does NOT have kitchen cabinets, because it has a pantry, YIKES.) Mom is 97 and has lived there her whole life. Read major refurb.
When we got to numbers, she mentioned she had an offer a few years ago from a builder for $250,000, but she knows the market is down. Today a very similar house in the same neighborhood there is active in MLS for $129,000. Unsold. It has been up for about 5 months.
I’m putting this on the forum because I know you guys are a lot smarter than me. I’m meeting her Thursday. When she hears my offer she will have sticker shock. Any good negotiating approaches? How do I soften the blow. Terms? Option?
Any ideas would be helpful.
Hey Walter
Sounds like there is definitely some opportunity the the owner/heirs will need a reality check.
I suggest that you use a multiple offer strategy and send them the recent comps for the area to back up your offer. in your written offer, explain the advantages of each offer.
Make a low ball all cash offer.
make a monthly payment offer that would be about 20% more than the low ball all cash – payments must be much less than it would rent for.
and make a thrid offer that is for even more money but split the note – with the 2nd note payments not starting until the 1st note is paid off. An advantage is they could sell the 1st note if you can find a private lender to buy it.
what’s your exit strategy?
If you don’t want to keep it for a long term rental, then your best bet is to structure this as an OPTION deal, where you have plenty of time to find someone to flip it to and you don’t close until you find the buyer.
You don’t want to get stuck with this property just before the winter and the holidays.
property tax bills are coming out soon and they will be even more motivated.
That sounds like a REALLY expensive nursing home. I don’t know how anyone can afford that.
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