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I talked to a homeowner today that needs to sell his property in a small town about 3.5 hours north of were i live (summit lake, wi). The population is around 150. There are a few cities with populations of 10,000 within a half hour. The property is about worth $400k. He is willing to take $300k. Would it even be worth a highest bidder sale due to the drive and population around? I thought about possibly just getting an option on it and marketing it for him. If he sells it before i do, I’ll void my agreement. Any other thoughts?
He needs the money for health problems and willing to do terms as well, minimum of $40k he needs. The house is free and clear. If you need to know more details about the house, let me know. There are a few more properties on the same road for sale because it is on the lake. I do not know how long they have been listed though.
I think the 75% on the dollar all cash is a little high unless it is a hot market. That price point should be good for a term deal. I would go back to him with “is that the best you can do”. For sure get an option on it either way. Put at least 2 For Sale Signs on the property as soon as you get the option. In a small town of 150 everyone will know about it within a few days. Sure do a HBS. Just my thoughts, but I would focus on the two towns of 10K for your marketing of the HBS. Put your big banner sign in the front yard at least 1 week prior to the HBS. Everyone in town will know about it. With a term deal at that price point I think you can get at least 40K down. Give it a try.
Don Wede
Yes, get the option for a term deal.
I would not rule out towns further away. There could be someone looking for a retirement property further away from town.
Signs are your most important marketing piece but you also need to run craigslist ads daily in the whole state and send out press releases the day you get the opion.
If he needs the first $40k, then your agreement should be written that get get everything over that or if that does not fly, you split it 50/50
Hopefully your terms to the seller are great. zero interest would be a plus. NO BALLOON.
When you sell, you will wrap the underlying note to the seller – so you will be able to get
cash from the down payment
monthly cash flow
payment on the back end tooRemember to use a mortage broker to qualify the buyers when you are selling with seller financing ( to comply with Dodd-Frank)
Ok. I’ll discuss with him for getting an Option to do a HBS the second weekend in September, because i actually might of just got a contract for a property in my hometown for $100k. ARV is at least $185k and needs some work. I am planning on doing a HBS for the property, cash only, the first weekend in September. Then I’ll do the one 3.5 hours north of me the follow weekend for terms.
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